Fosun denies reports Chinese regulators asked banks to report its risk exposure

Fosun denies reports Chinese regulators asked banks to report its risk exposure

A sign boards the headquarters building of Fosun International in Shanghai, China, March 29, 2016. REUTERS/Aly Song/File Photo

Register now and get FREE unlimited access to Reuters.com

SHANGHAI, 14 Sep. (Reuters) – Fosun International (0656.HK) said on Wednesday that media reports that Chinese regulators had ordered the country’s largest banks to begin a series of reviews of their financial exposure to the Chinese conglomerate were false.

Bloomberg, citing people familiar with the matter, reported on Tuesday that regulators, including the China Banking and Insurance Regulatory Commission (CBIRC), have asked commercial banks to review their exposure to Fosun’s debt and understand potential liquidity risks. .

The company’s shares fell 7.55% on Wednesday to HK$4.53, close to a 10-year low.

Register now and get FREE unlimited access to Reuters.com

In a statement, Fosun said such reports are “pure bullshit” and that it has sought confirmation from regulators through multiple channels. The CBIRC did not ask the banks about their financial impact on Fosun, and many of the banks that do business with Fosun have not received such notification, the company said.

A “difficult external environment” has drawn public attention to Fosun’s recent asset sale and stake cut, leading to a “one-sided interpretation” of the company’s actions, Fosun CFO Gong Ping said in a statement.

“Fosun’s recent seemingly frequent cuts and sales are a continuation of its financial strategy of the past few years to maintain a balance between investment and withdrawals,” he said.

CBIRC did not respond to a Reuters request for comment.

Fosun owns the Club Med resort brand and controls French fashion house Lanvin, among other assets. He used to be one of China’s most stingy deal agents until Beijing cracked down on luxury foreign acquisitions a few years ago.

This year, the company agreed to sell its 4.89% stake in Tsingtao Brewery Co Ltd and also reduce its stake in Fosun Tourism. (1992. Hong Kong).

Register now and get FREE unlimited access to Reuters.com

Reporting by Xu Kaiwen and Brenda Guo; Edited by Christian Schmollinger and Jacqueline Wong

Our standards: Thomson Reuters Trust Principles.

.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Previous Post
The Czech government will give district heating plants more freedom of emissions to save gas
Blog

Lake Resources in dispute with Lilac Solutions over stake in lithium project in Argentina

Next Post
From Balakleya to Izyum, the path to the return of Ukraine
Blog

From Balakleya to Izyum, the path to the return of Ukraine

Leave a Reply

Your email address will not be published. Required fields are marked *