Fosun remains on course for global growth
SHANGHAI: Fosun International Ltd, one of the companies in the cross hairs of a Chinese government crackdown on offshore acquisitions, says its plans for growth don’t clash with the authorities’ agenda.
The acquisitive insurance-to-drugs group remains on course to expand its footprint globally, focusing on sectors the government has indicated are good for deals, said Fosun Group co-president Xu Xiaoliang.
The government had even endorsed Fosun’s two most recent purchases, said Xu.
Government probes into offshore deal finances have been generating headlines for months, slamming some companies’ shares, prompting asset sales, delaying purchases and spawning speculation about executives being detained. Like Fosun, HNA Group Co, Dalian Wanda Group Co, Anbang Insurance Group Co and the Chinese owner of the AC Milan soccer club have been affected. “Now that we know what the government encourages and disourages, we have a clearer idea of where to expand our global footprint,” said Xu.
“Over time, we will demonstrate to the government what we are trying to achieve.”
Xu has a couple of other reasons for optimism.
The company last week reported firsthalf profit rose by more than a third.
Its stock is up about 17 per cent since the close on August 18, the day the government set out the specifics of its push against “irrational” overseas investments.