Taking Shanghai group public a landmark move, test case for China sport business

The public listing of Shanghai Jiushi Dongyu Culture, Sports & Tourism Group will serve as a landmark precedent for China to experiment with an integrated, market-driven sports model, according to an industry expert.

Mark Thomas, managing director of China-focused sports events consultancy S2M Consulting, believes the major asset restructuring will ultimately deliver a better overall experience for local sports fans by unifying diverse business functions under a single corporate umbrella.

Listed on the Shanghai Stock Exchange for the first time last week, the state-owned entity consolidates top-tier international sporting events, including the Formula 1 Chinese Grand Prix, the ATP Tour Shanghai Rolex Masters and the Shanghai Masters snooker tournament.

“I think it’s almost a unique example, and the first example of a Chinese state-owned company listing a sports entity,” Thomas said. “It probably acts as a test case of the way the future of sport is structured, promoted, [and] how investments are evaluated.”

Historically, Chinese municipal and provincial governments have managed sports through state-backed arms, evaluating major events and infrastructure investments primarily based on city branding, economic impact and public health objectives.

Its parent company, the Jiushi Group, is one of the city’s largest state-owned enterprises, with holdings ranging from prime real estate along The Bund to river ferries, bus networks and major transit infrastructure.