Strategy

Acquisition-Focused Fosun Forms Strategic Pact With HSBC

Tom Burroughes, Group Editor, 27 March 2018

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The banking group has signed an agreement with the conglomerate as part of the latter's growth plans.

Fosun International, the Hong Kong-listed group that has bought a number of foreign financial groups, has signed a strategic co-operation pact with HSBC as part of its growth plans.

The agreement has been signed by Wang Qunbin, chief executive of Fosun International and Stuart Grant, vice chairman, commercial Banking of HSBC (Asia-Pacific), at Fosun’s Shanghai headquarters.

The group, which owns companies across a number of sectors, has bought non-domestic wealth and asset management firms as part of its strategy. At the start of March, for example, Fosun bought Brazilian asset manager Guide Investimentos for $52 million; it has purchased Hauck & Aufhäuser, the venerable German private banking and financial firm, for example.

In 2015 Fosun launched a financial platform for its investment and asset management business in Russia and neighbouring countries. Fosun was founded in 1992, and its activities span a variety of sectors, including financial services and wealth management. Not all of its bids have been successful; in 2015 it pulled out of an attempt to acquire BHF Kleinwort Benson.

“According to the agreement, HSBC will provide Fosun with a range of worldwide financial services, including corporate financing services, cash management and settlement services, global capital market operations, and various market risk hedging services,” Grant said. 

Late in November, Fosun raised $300 million via the issue of a senior guaranteed bond with a three-year maturity. Proceeds are being used to refinance some existing debts and for working capital and general corporate purposes. It was assigned a credit rating of BB (stable) by S&P Global Ratings.

 

 

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