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Tag Archives: Fosun
Fosun latest Business & Financial news from Doug Young, the Expert on Chinese High Tech Market, (former Journalist and Chief editor at Reuters) Fosun is Chinese company.
Many smaller Chinese companies may be getting little or no respect from Wall Street these days, but private equity seems a bit more interested in these undervalued firms. That’s my latest assessment following word that a bidding war has broken out for Chindex (Nasdaq: CNDX), an operator of clinics in China. Chindex said it received a sweetened buyout offer from a managed-led group that first bid for the company in February, after a rival bidder stepped in. This kind of bidding war has been relatively rare in the recent flurry of privatizations by Chinese firms, though this particular case hints that we could see 1 or 2 more similar wars occur as the trend plays out. Read Full Post…
An interesting new player may soon be coming to China’s crowded and highly fragmented private equity scene, with word that a major company has been set up by a group of leading entrepreneurs in Beijing and Shanghai. The company has a hefty 50 billion yuan in investment, equating to $8 billion. The player would be an important addition to China’s fast emerging field of major private equity firms, most of which are headed by entrepreneurial chiefs who are increasingly looking abroad for good investments. Read Full Post…
News of major new fund-raising by 2 Chinese financial firms is casting a spotlight on the wide range of private lending organizations that are likely to emerge in the years ahead, fueled by Beijing’s desire to create a more efficient lending environment. In this case we’re seeing activity at opposite ends of the spectrum, led by a massive new rights offer by private equity giant Fosun International (HKEx: 656), and a more modest but still significant second-round venture capital investment for peer-to-peer (P2P) lending platform Ppdai.com.
Both of these moves spotlight the wide array of choices that investors will soon have for private-sector financiers in China. But this emerging sector will also carry significant risk, since Beijing is still trying to figure out how to adequately regulate this group to ensure its longer-term healthy development. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 10. To view a full article or story, click on the link next to the headline.
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Goldman (NYSE: GS), Warburg Advance In China Huarong Sale: Sources (English article)
MIIT To Begin Private Sector Broadband Network Trials in H2 (English article)
The Internet world is buzzing today with word that Alibaba and Tencent (HKEx: 700), China’s 2 dominant Internet firms, are among the first group of 10 companies to receive banking licenses as Beijing opens the sector to private competition. From a macro-economic perspective, the move is certainly a welcome one for China and should provide some much-needed competition for the nation’s stodgy state-run lenders that now control the sector.
But from an individual company perspective, I really can’t see how traditional banking fits into either Tencent’s or Alibaba’s core Internet business, and worry a bit that this new initiative could ultimately distract these companies from their main focuses. I do expect that Tencent may ultimately follow its recent strategy of spinning off businesses and move its bank into a separate company, which looks like the right move. Alibaba would be well advised to do the same, though founder Jack Ma has shown a tendency for wanting to keep all his companies under one roof. Read Full Post…
Private equity investor Fosun International (HKEx: 656) is closing in on a landmark but controversial deal to buy US publishing giant Forbes Media, which would become the first purchase of a major western media firm by a Chinese company. The deal is almost certain to draw attention in the US where Forbes is based, with some calling for the government to stop the sale over concerns that Fosun could interfere with Forbes’ editorial independence and block publication of sensitive content. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 22-24. To view a full article or story, click on the link next to the headline.
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Fosun Int’l (HKEx: 656) May Acquire Forbes Media For Under $250 Mln (Chinese article)
CCTV Commentator Calls For Ban Of Alibaba’s Yu’ebao, Calling It A Vampire (Chinese article)
Vipshop Acquires Minority Interest in Ovation For $55.8 Mln (PRNewswire)
China Auto Lobby, Policymakers Collide Over Foreign Investment (English article)
I’ll start this post with a major disclaimer, since one of my main reasons is simple sentimentality for writing about the newly announced buyout of New York-listed hospital operator Chindex (Nasdaq: CHDX) by a unit of the aggressive Fosun Group. When I first arrived in Beijing in 1987 as recent college graduate, I worked briefly in Chindex’s Beijing offices, which at the time were in the old Xiyuan hotel near the Beijing zoo. Since then, the company has transformed from its early days as an importer of medical and industrial equipment to its current focus on building and operating hospitals and clinics. Along the way it also made an IPO, and has quietly grown into a company with a market value of nearly $300 million. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 18. To view a full article or story, click on the link next to the headline.
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New Oriental (NYSE: EDU) Spins Off Online Education Business – Memo (English article)
The following press releases and media reports about Chinese companies were carried on January 23. To view a full article or story, click on the link next to the headline.
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China Mobile (HKEx: 941) Lowers Prices For Home Broadband Users (Chinese article)
Online Travel Agent Tuniu To Raise $100 Mln In New York IPO – Source (Chinese article)
Fosun Group, Prudential Financial (NYSE: PRU) Expand Partnership In China (Businesswire)
Nu Skin (NYSE: NUS) Issues Apology, Takes Corrective Steps In China (Chinese article)
Wanda Hotels And Resorts Holds Its First Brand Ceremony (PRNewswire)
Just days after making headlines for being selected to buy Portugal’s top insurer, Chinese investment firm Fosun International (HKEx: 656) is back in the news as a finalist in the bidding for Forbes Media, publisher of Forbes magazine. The deal is just the latest in a recent series of major purchases for Fosun, and more broadly kicks off a year that could see record overseas M&A by a rising group of Chinese investment firms. Fosun’s evolving strategy seems to target companies that are profitable but also laggards in their areas, which is relatively common among such investors. But in this case, I have serious doubts about its pursuit of Forbes due to the global rapid decline of the traditional media industry. Read Full Post…
