High-flying HNA gets wings clipped amid crackdown on foreign deals

Beijing

HNA Group, the high-flying Chinese conglomerate caught in the cross-sights of Beijing, has hit turbulence as deals stall and scrutiny of its finances and shareholding structure intensifies.

Beijing's clampdown on highly-leveraged foreign investment has led to more regulatory scrutiny around the world, putting the brakes on a remarkable period of growth that saw HNA announce US$50 billion of acquisitions in just over two years.

New deals have dried up and investment banks like Goldman Sachs and Bank of America Merrill Lynch have grown wary of working with the company that has sprawling interests in aviation, logistics and tourism.

HNA's long-term strategy of debt-fuelled growth, which peaked with its purchase of stakes in Hilton Worldwide Holdings and Deutsche Bank, is fraying, compounding the company's problems as it struggles…