Sina Doubles Down to Ward Off Activists After Proxy Fight

Sina, the Chinese internet company, won a proxy fight against an American hedge fund last week. On Tuesday, it doubled down to avoid further challenges from activist investors.

Just days after winning the proxy fight, the New-York listed Chinese company changed its shareholder structure, effectively giving majority control to Charles Chao, its chairman and chief executive.

Sina — which controls Weibo, one of China’s biggest social networks — had faced a shareholder vote forced by Aristeia Capital, a hedge fund based in Greenwich, Conn. Aristeia had pushed for changes in Sina’s business to direct more money to shareholders, and nominated two new members for the company’s board.

But on Friday, Sina defeated the challenge, seen as a key test of the power that American shareholders can wield over Chinese companies listed in the United States. The fight was also watched by investors who had complained about the relative lack of shareholder rights in Chinese companies that are incorporated in business-friendly places like the Cayman Islands, as Sina is.

In the aftermath of the proxy victory, Sina emphasized its focus on corporate governance. “We will continue engaging constructively with our shareholders toward our common goal of long-term value creation,” Mr. Chao said on Friday.

On Tuesday, however, the company took steps to ensure it would not have to face an activist campaign again.