Hylink CEO Su Tong resigns amid alleged market manipulation

Su Tong, founder and CEO of Hylink Digital Solutions, has stepped down following allegations of market manipulation. Hylink, China’s largest independent full-service digital advertising agency and a listed company on the Shanghai Stock Exchange, confirmed the resignation, stating that the decision was made to safeguard the company’s reputation and ensure operational continuity during the investigation.

Su Tong founded Hylink in 1994 and played a role in establishing the agency as a leading player in China’s advertising and digital marketing industry. The company has grown to provide a wide range of services including media planning, creative content development, and data analytics, working with clients across sectors such as automotive, technology, luxury, and ecommerce.

While specific details of the case remain undisclosed, reports indicate that the accusations involve irregularities in the company’s stock trading. The news of alleged financial irregularities caused the company’s stock price to plunge. Opening at 12.23 CNY, it dropped to an intraday low of 11.67 CNY, reflecting an 8% loss from the previous close of 12.76 CNY on January 16. 

Hylink announced late last Friday that it received an Administrative Penalty Decision from the China Securities Regulatory Commission (CSRC). Su Tong and Yang Ning, the former vice general manager of Hylink, reportedly utilised 20 securities accounts to manipulate the company's stock. As a result, the CSRC imposed a total fine of RMB8 million (approximately US$1.1 million) on both Tong and Ning, along with a 10-year market ban. Tong was also warned and fined RMB1 million (around US$137,000) for failing to disclose information accurately. 

Su Tong is a well-known figure in China's advertising industry. He's earned multiple accolades over his career including the 'Top 100 People in China Online Advertising (1997–2007)' and has also been named a 'Heroic Figure in China Interactive Advertising' by the China Advertising Association.

Hylink, headquartered in Beijing with offices in Los Angeles, Shanghai, Paris, Bogota, Milano, Seoul, and Hong Kong, has been a major driver of digital advertising in China. However, the allegations and Su Tong’s resignation are expected to test the company’s ability to maintain investor and client confidence.

The company has not yet announced a replacement for Su Tong. Its leadership team is currently managing operations while the situation develops.