Fosun’s debt “only 100 billion yuan”
Fosun International (0656) said yesterday that its actual debt was 100 billion yuan (112 billion Hong Kong dollars), well below the 650 billion yuan in liabilities that the market is worried about.
The Shanghai-headquartered conglomerate pointed out that liabilities attributable to the parent company amounted to only 100 billion yuan, after excluding the liabilities of subsidiaries, including insurers and banks, from consolidated debt. of 651.3 billion yuan.
And the company said it may add debt as its net asset value per share is expected to be around 20 yuan with total assets of 270 billion yuan.
Meanwhile, Fosun sold 26.16 billion shares of New China Life Insurance (1336) for 448 million yuan at 17.12 yuan per share.
After the unloading, Fosun’s stake in the insurer fell from 5.84% to 4.99%. According to the market regulator, companies are required to disclose their interests in other companies if they own 5% or more.
Separately, Shanghai-based developer CIFI (0884) will raise up to 1.2 billion yuan through its wholly-owned subsidiary issuing the second phase of a three-year note tomorrow. CIFI said the issue was fully underwritten by state-owned China Bond Insurance Corporation.
Its board of directors, including chairman Lin Zhong, announced that it would buy 500,000 shares for approximately HK$825,000 on the open market, increasing its stake in the company to 51.55%.