China is clamping down on predatory 'financial crocodiles'

Monday, 17 July 2017, 09:56:11 AM. Chinese moguls have gobbled up American companies, but a crackdown could be in their future.
A trainer picks up Chinese Yuan banknotes from the open mouth of a crocodile during a performance at a zoo REUTERS/Stringer In nature, crocodiles are apex predators. They sit at the top of the food chain. As adults, they’re not preyed upon by any other species in the wild. China’s “financial crocodiles” similarly sit atop their respective financial market food chain. These large Chinese conglomerates are headed by high-profile billionaires like Wang Jianlin of Wanda Group (net worth estimated at US$28.7 billion), Wu Xiaohui (over US$1.1 billion) of Anbang Insurance Group, Guo Guangchang (US$7.3 billion) of Fosun International Limited, and Cheng Feng (undisclosed, but lots…) of HNA Group Co. Ltd. These crocodiles are well known outside of China for their large-scale and aggressive overseas acquisition and investment sprees over the past couple of years. And make no mistake, these crocodiles have been feasting… Billions of dollars in deals For example, Dalian Wanda paid US$3.5 billion for Legendary Entertainment Group, the producer of some 50 feature films (including The Dark Knight, The Hangover, and Godzilla) last year. Meanwhile, HNA Group paid US$6.5 billion for 25 percent of hospitality group Hilton Worldwide. Fosun purchased Club Méditerranée (the group behind the Club Med resort chain) for US$1.1 billion, and paid US$1.5 billion for the Cirque du Soleil entertainment company. And Anbang bought Strategic Hotels & Resorts (a hospitality REIT) for US$6.5 billion. And...Read more
Share this

You might also like

Similar