“Mr Guo does not appear in imminent danger of sharing their fate. But his company is in trouble. On October 25th Moody’s, a ratings agency, downgraded Fosun’s debt deeper into junk territory. Chinese banks have been asking the firm to provide more collateral for loans. To meet its obligations Fosun has already divested $5bn-worth of assets this year, according to data from Refinitiv, a research firm. By 2023 it could shed $11bn-worth. That is quite the reversal for the asset-hungry group. It also marks the end of a freewheeling era in Chinese business, which is turning inwards under President Xi Jinping.”
Disclaimer:
Experience from past learnings. Saw my friends burn their hands in GE power on the thesis of FGD installation inspite of problems at parent level.
Gland at parent level seems to be going through multiple problems as indicated by the article. Always tread with caution in such cases.
Not invested. Studied the business, ended up avoiding as didn’t pass the management filter due to parent level problems.
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