Following its emergence from the scrutiny of Chinese regulators over debt-fuelled shopping abroad by Chinese conglomerates, the Chinese firm Fosun International claimed that it still plans to conduct overseas acquisitions.
The firm announced that the planned acquisitions would be targeted at assets in the Top of Form US, Europe and Africa so that the company is able to expand its global footprint. This despite the escalating trade dispute between China and the United States, said the chairman of the firm.
Even while the Chinee authorities were conducting a national crackdown on “irrational” overseas acquisitions and at a time when most of its peers were seen selling off their foreign assets, Fosun, one of China’s most prolific overseas buyers, had kept up its foreign asset buying spree this year even.
“We believe our investments in the US will still be welcome, and we have seen more investment opportunities in Europe,” billionaire tycoon Guo Guangchang, who co-founded the company, told a press conference.
Fosun’s technology and investment were also being welcomes in India and countries in Africa.
Guo said he “trusted the wisdom of the Chinese and US leadership” to resolve their trade conflict.”
25 per cent of the world’s largest theatrical producer, Cirque du Soleil and the French holiday resort chain Club Med, is owned by the Shanghai-based Fosun.
A number of assets overseas had bene acquired by the company this year which includes taking up stakes in European fashion company Lanvin and Wolford. The company made these acquisitions despite coming under intense scrutiny from the Chinese government on overseas purchases funded by debts from China.
Other Chinese companies like Dalian Wanda Group and HNA Group had bene busy selling off some of their international assets in the face of the pressure form Chinese regulators and to conform to new guidelines relating to overseas assets.
Unfazed by the crackdown, Fosun still plans to spin off more of its business segments and then float them in Hong Kong. Recently, permission for floating of its Fosun Tourism and Culture Group unit was granted to the company by bourse operator. The company has also filed an application for issuance of an initial public offering for its online parenting firm, Babytree Group.
“We hope we will present more unicorn-style, high-growth businesses to the capital market in Hong Kong and elsewhere,” said Chen Qiyu, executive director and co-president of the company.
Chen said that since the Hing Kong stock exchange conducted reforms its listing rules include technology and biopharma firms, the market has become more attractive.
The comments made by Guo and Chen were after the company reported an increase of 17 per cent in profits for the first half of the year driven by strong growth in its health care, tourism and fashion segments.
(Adapted from SCMP.com)