Fosun is not under regulatory scrutiny for corporate financials: company
Published: Sep 14, 2022 03:41 PM Updated: Sep 14, 2022 03:34 PM

photo: web

photo: web

Fosun Group refuted a report by Bloomberg on Wednesday which claimed Chinese authorities have instructed banks and state-owned firms to check on their financial exposure to Fosun amid concerns about financial health of Fusun.

Fosun said media allegations of a regulatory requirement to review Fusun’s financial health are completely false, the company said in a statement on Wednesday.

Shares of Fosun International closed down 6.94 percent in Hong Kong on Wednesday.

The group said it has sought confirmation from regulators through multiple channels and learned that the China Banking and Insurance Regulatory Commission (CBIRC) had not asked commercial banks to scrutinize their exposure to Fosun and that many commercial banks cooperating with the firm had not received relevant notices.

The clarification came after Bloomberg reported on Wednesday that Chinese regulators including CBIRC and a branch of the State-owned Assets Supervision and Administration Commission told institutions to review their exposure to Fosun, citing unnamed sources. The moves may not lead to any action, Bloomberg report said.

Gong Ping, Executive President and CFO of Fosun International said that recent frequent divestments and asset sales related with Fosun is a continuation of “balancing investment and divestment and optimizing asset portfolio”.

Gong said that the company also noticed that the complex external environment has triggered rising public concern over the disposal of Fosun Group's assets, resulting in the “one-sided interpretation”.

Fosun’s financial strength attracted more scrutiny from investors, as the company’s  stock prices tumbled in recent months.

Shares of Fosun International closed down 4 percent in Hong Kong on Tuesday, wiping off 15 percent since September 2. 

Fosun disclosed a plan earlier in September to pare stakes in the group’s publicly listed tourism and pharmaceutical units. 

Fosun Tourism Group said in a filing on September 6 that Fosun International Limited, the controlling shareholder of the company, contracted to sell 28,000,000 shares at the price of HK$8.57 per share to independent third parties on September 5.

Fosun Pharmaceutical on September 2 said that the controlling shareholder, Shanghai Fosun High Technology, planned to reduce its holdings of 80.89 million A-shares and the reduction would raise 3.2 billion yuan.

Founded in 1992, Fosun Group is a global innovation-driven consumer group dedicated to providing high-quality products and services for families around the world in health, happiness, wealth and intelligent manufacturing.

Guo Guangchang, co-founder and chairman of Fosun Group, said in a social media post on Tuesday that many of Fosun’s overseas businesses are now doing better than before the pandemic. 

“Fosun has nearly half its businesses and employees overseas. I've seen many of our overseas businesses come back to a better position than they were before the pandemic, and some of them have grown at a very high rate even during the pandemic,” Guo wrote on Weibo, adding that he has returned to Shanghai after months of oversea business trips.

“As an enterprise rooted in China, China will always be the most important base for Fosun. In the future, I hope Fosun can achieve high-speed growth in both global and domestic market,” Guo added.