China’s Fosun further cuts stakes in listed firms amid debt concerns

CHINESE conglomerate Fosun International recently cut its stake in New China Life Insurance and a Fosun unit reduced holdings in Shanghai Yuyuan Tourist Mart Group, exchange filings showed late on Monday (Sep 19).

Fosun raised roughly 696 million yuan (S$139.7 million) through the share reductions, based on company statements and Reuters calculation.

The disclosure follows a series of stake reductions and sales by Fosun and comes amid market concerns over Fosun’s financial health.

New China Life said in a statement that Fosun on Sep 15 offloaded 26.2 million Hong Kong-traded H-shares of the company or 0.84 per cent of total shares.

Yuyuan Tourist Mart said in a separate statement that a Fosun unit, which is also its controlling shareholder, reduced 38.9 million shares of the company, or 1 per cent of total shares, between Aug 26 and Sep 19.

Fosun, controlled by billionaire founder Guo Guangchang, said last week that media reports saying Chinese regulators have told the country’s biggest banks to start a round of checks on their financial exposure to the Chinese conglomerate were false.

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Fosun owns resorts brand Club Med and controls French fashion house Lanvin among other assets, and was once one of China’s most acquisitive dealmakers.

The company has so far this year agreed to sell its 4.89 per cent stake in Tsingtao Brewery and is also reducing its stake in Fosun Tourism. REUTERS