Home news China raises heat over foreign investment

China raises heat over foreign investment


Shares in two of China’s biggest conglomerates, Fosun International and HNA, fell by about 6% on Thursday, amid rumours that banks had been ordered to assess their loan exposure to them. Fosun bought Wolverhampton Wanderers football club last year, while Anbang owns New York’s Waldorf Astoria hotel. Reports said the banking regulator had also told lenders to investigate loans to Anbang Insurance, Odeon UK cinema owner Dalian Wanda and Zhejiang Luosen. All five are big overseas investors. The conglomerates’ other high profile acquisitions include Zhejiang Luosen buying AC Milan football club earlier this year.Last month HNA became the biggest shareholder in Deutsche Bank and it has a 25% share in Hilton.Wanda is the world’s biggest cinema operator, and also owns the UCI chains in the UK. The China Banking Regulatory Commission (CBRC) had told lenders to conduct internal assessments of their credit-risk exposure to acquisitive companies, according to business magazine Caixin, quoting sources. The CBRC has been attempting to stem the flow of money leaving China.Last year China’s companies invested $225bn (£178bn) overseas. The outflow has put pressure on the currency, the renminbi, and drained foreign exchange reserves.
Source: BBC