Fosun denies reports China regulators asked banks to report exposure to it (updated)

Fosun Tourism

14/09/2022 04:27

(Adds quote from Fosun CFO, details and share price)
    SHANGHAI, Sept 14 (Reuters) - Fosun International  0656.HK 
said on Wednesday 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. 
    Bloomberg, citing people familiar with the matter, reported
on Tuesday that regulators including the China Banking and
Insurance Regulatory Commission (CBIRC) had requested that
commercial banks check their exposure to Fosun's debt and
understand potential liquidity risks.
    Shares in the company slumped as much as 7.55% on Wednesday
to HK$4.53, near a 10-year low.  urn:newsml:reuters.com:*:nL1N30L043 urn:newsml:reuters.com:*:nL4N30K1KB
    Fosun said in a statement such reports were "sheer nonsense"
and that it had sought confirmation from regulators through
multiple channels. The CBIRC has not asked banks about their
financial exposure to Fosun and many banks that cooperate with
Fosun have not received such a notice, the company said. 
    The "complex external environment" has increased public
attention towards Fosun's recent asset sales and stake
reductions, resulting in a "one-sided interpretation" of the
company's actions, Fosun's Chief Financial Officer Gong Ping
said in the statement.
    "Fosun's recent seemingly frequent reductions and sales are
a continuation of its financial strategy of the past few years
of maintaining a balance between investments and withdrawals,"
he said.
    CBIRC has not responded to Reuters request for comment.
    Fosun owns resorts brand Club Med and controls French
fashion house Lanvin among other assets. It was previously one
of China's most acquisitive dealmakers until Beijing's crackdown
on flashy overseas acquisitions a few years ago.
    The company has so far this year agreed to sell its 4.89%
stake in Tsingtao Brewery Co Ltd  0168.HK  and is also reducing
its stake in Fosun Tourism  1992.HK .
    


 (Reporting by Xu Kaiwen and Brenda Goh; Editing by Christian
Schmollinger and Jacqueline Wong)
 ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters
Messaging: brenda.goh.thomsonreuters.com@reuters.net))