The organisation has been buying businesses across a variety of sectors, including European private banking.

UBS thinks that Hong Kong-listed conglomerate Fosun International – which has bought financial assets such as Western private banks – can manage near-term financing risks; consequently, it has assigned Fosun a "neutral" rating with a 12-month target price of HK$9.1 ($1.15).

Although refinancing risks on Chinese companies are rising because of economic strains in China, UBS thinks that Fosun should be able to effectively manage such risks in the near term through a slowdown in investments and an increase in asset disposals, Fosun said in a statement yesterday.

The conglomerate has refinanced its onshore bonds with short-term commercial papers and an offshore bond with asset disposals. The Swiss bank estimates that Fosun's non-core listed investments can cover its bond refinancing needs in the next 12 months, Fosun said.

At present, Fosun’s share price trades at a 63 per cent discount to its net asset value, mainly a result of how worries about China’s slowing economy are hitting a variety of sectors. UBS assigned Fosun International a 12-month target price of HK$9.1, equating to a rise of about 26 per cent compared with its closing price at HK$7.25 on 30 June.

Fosun has been active in the Western private banking market. Last October, the German bank subsidiary of Chinese conglomerate Fosun International bought Bankhaus Lampe, the private bank. In 2016, Fosun finally completed its acquisition of H&A, a German private bank dating back 220 years. Fosun covers a variety of business sectors including financial services. It has bought a number of financial and related firms, as reported here.

Concerns about China’s economy have mounted; the country has imposed a strict “zero-Covid” policy to handle the pandemic, forcing a number of major cities to impose lockdowns. The Asian country’s real estate sector has been hit by concerns about the viability of its building projects and financing, highlighted more than a year ago by the debt woes of Evergrande, the developer.

Fosun’s release on UBS’ report about its financial health noted that S&P Global Ratings published a report in early June, maintaining "BB Stable" credit rating to Fosun. On 23 June, S&P Global Ratings published another report, stating that Fosun has adequate resources to meet its upcoming debt maturities over the next six to 12 months.