Each time the "divorce ledger" of a controlling shareholder of a listed company is opened, it invariably captures the attention of investors. Recently, Chen Xiaoying, one of the controlling shareholders of Shentong Express, was sued by her ex-husband 14 years after their divorce, demanding the transfer of 20.284 million company shares. Based on the closing price of 13.78 yuan per share on the announcement date (January 21), the market value of this equity stake was approximately 280 million yuan. In fact, such "dramas of equity division due to divorce" are not uncommon.
Statistics reveal that throughout 2025, a total of 12 A-share listed companies became involved in equity splits due to the divorces of their controlling shareholders. The total market value of the divided equity increased from 5.783 billion yuan on the respective announcement dates to 6.321 billion yuan by year-end, with no share reductions implemented by either the controlling shareholders or their former spouses. In these cases, some divisions were settled amicably through negotiation, others were decided by court rulings, and in one instance, an individual directly gained control of the company through the divorce settlement.
Professor Zheng Zhigang from the School of Finance at Renmin University of China analyzed that a key characteristic of listed companies is the separation of ownership and management; theoretically, changes in share ownership do not necessarily affect the company's operational methods. Furthermore, when faced with potential returns on their interests, even after divorce and equity division, the former couple may maintain aligned positions on critical issues such as company operations and strategy.
The trend of equity splits triggered by controlling shareholders' divorces continued to play out in the 2025 A-share market. According to statistics, 12 A-share companies announced details of equity divisions resulting from such divorces. It is worth noting that this statistical analysis considers only the number of shares divided in the specific divorce event; any pre-existing holdings by the ex-spouse are excluded. For companies like Shichuang Energy, Shanshui Technology, and Jinyuan Shares, the reported figures represent the sum of direct and indirect shareholdings obtained by the ex-spouse in this particular division.
The data shows that the combined market value of the divided shares reached 5.783 billion yuan on the respective announcement dates. By December 31, 2025, excluding Digital China Group whose case was still under litigation with undisclosed details, the market value of the equity portions involved in the splits for the remaining 11 companies had grown to 6.321 billion yuan. However, the amounts involved in these "divorce settlements" varied dramatically. Quectel Wireless Solutions recorded the highest split value for the year at 1.198 billion yuan, while Yuean New Materials had the lowest among the 12 companies, with a divided equity value of 157 million yuan.
Among these cases, the outcome for Shanshui Technology was particularly unique. In an announcement on October 20 last year, the company stated that its controlling shareholder, Chairman, and General Manager Huang Guorong had been subjected to criminal compulsory measures for personal reasons. Subsequently, on November 7, the company announced that Huang Guorong and Wu Xinyan had dissolved their marriage through court mediation. Following the equity division, Wu Xinyan became the new controlling shareholder of the company and also assumed the roles of Chairwoman and General Manager. This represents the only case in the 2025 A-share market where an individual became the head of a listed company following a divorce.
Regarding the employment status of ex-spouses of controlling shareholders, aside from Shanshui Technology, Shi Lefen, the ex-spouse of Zhucheng Technology's controlling shareholder, serves as a director of the company. The ex-spouses from all other companies held no positions within their respective firms, meaning they did not engage in core operational or management activities post-divorce.
In terms of the methods used for equity division, amicable settlements through divorce agreements constituted the vast majority: among the 12 companies, 7 (58.33%) resolved the split through friendly negotiation; 2 were settled by court judgment, and 2 concluded following court mediation. The divorce case involving the controlling shareholder of Digital China Group remained locked in protracted litigation.
A primary concern for investors is whether a listed company's share price will decline following an equity division due to a controlling shareholder's divorce, particularly due to potential selling by the ex-spouse. Based on the statistical results, among the 12 companies, 10 (83.33%) saw their share prices increase from the announcement date to the final trading day of 2025. Yuean New Materials recorded the highest cumulative price increase at 37.21%; companies like Jinyuan Shares and Vstone also saw gains exceeding 20%, effectively resulting in passive gains for the ex-spouses. Only Shanshui Technology and Jindan Technology experienced share price declines, with the maximum drop being 13%.
More notably, neither the controlling shareholders nor their former spouses from these 12 companies reduced their shareholdings after the equity splits. Combining this observation with the share price movements from the announcements until year-end indicates that not only did the involved parties remain composed, but the market also largely refrained from interpreting these events as negative signals.
Investors' concerns are not entirely unfounded, as there have been historical instances where A-share companies experienced significant share price declines following announcements of controlling shareholders' divorces and equity splits. This typically stems from fears that the ex-spouse might sell their newly acquired shares, leading such news to be perceived negatively. For example, one A-share company saw its stock price drop over 5% on the announcement day and continue falling for the next three trading sessions, resulting in a cumulative decline of 21.44% over just four trading days.
Why did the negative market interpretation of equity splits due to controlling shareholders' divorces appear to weaken in the 2025 A-share market? Professor Zheng Zhigang, in an interview, analyzed that the fundamental separation of ownership and management in listed companies means that changes in share ownership do not inherently alter operational methods. This principle suggests that the division of equity between a couple, in itself, does not substantially impact the traditional operational framework of the company, which holds true for the majority of enterprises facing such situations.
Furthermore, Professor Zheng added that despite potentially deep-seated conflicts between the former couple, even to the point of being irreconcilable, neither party is likely to act against their financial interests. When it comes to returns on their investment, their viewpoints might be highly aligned. The possibility exists that even amidst personal estrangement, the former spouses could maintain a unified stance on key corporate matters like operations and strategy.
