Three of NYC’s most active investors are in the crosshairs of Chinese regulators

China Banking Regulatory Commission is looking to get a handle on runaway debt

TRD New York /
Jun.June 22, 2017 01:40 PM

Anbang Insurance Group, HNA Group and Fosun International are among five international dealmakers that China’s banking regulator is investigating as it attempts to control debt levels.

The China Banking Regulatory commission is looking into the firms in order to “examine those companies’ leverage situations and risks,” a source told the Wall Street Journal.

Dalian Wanda Group TRData LogoTINY and Rossoneri Sports Investment Management Changxing Ltd. are the other firms regulators are scrutinizing. Not counting Rossoneri (the new owner of Italian soccer club AC Milan), the firms have made $57 billion worth of overseas investments since the beginning of 2015, or 15 percent of Chinese company totals, according to data from Dealogic.

“They’re all guys that have engaged in high-profile marquee international acquisitions,” said Forsyth Barr Asia’s Bill Bowler, an equity-sales trader based in Hong Kong.

The investigation began on June 6, when officials got together for what was described as “urgent” conference calls. Shares of Fosun, Dalian Wanda and HNA Group tumbled Thursday following the news.

HNA made headlines here in New York in March when it went into contract to buy 245 Park Avenue for $2.21 billion. It also owns 25 percent of Hilton Hotels.

Anbang chairman Wu Xiaohui earlier this month turned over his duties for “personal reasons” amid new claims that he had been detained by Chinese authorities. Chinese banks were subsequently told to stop doing business with the company, which owns the Waldorf Astoria.

In late 2015, Fosun’s CEO Guo Guangchang, dubbed the Warren Buffett of China, was reportedly detained by Chinese authorities. He re-emerged about a week later.

The recent investigation into the big dealmakers comes as Beijing rolls out new capital controls to stabilize the country’s weakening currency and promote domestic investment. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
529 Fifth Avenue and Silverstein Properties' Larry Silverstein (Google Maps; Getty)

Silverstein gets $171M refi for 529 Fifth Avenue

Silverstein gets $171M refi for 529 Fifth Avenue
Lantern Real Estate co-founder Tal Bar-Or and a rendering of the project

Williamsburg building gets $41M bridge loan after Brooklyn Boulders bails

Williamsburg building gets $41M bridge loan after Brooklyn Boulders bails
AIG CEO Brian Duperreault and Brooklyn Navy Yard project, with Andrew Joblon and 980 East 149th Street (Turnbridge, Brooklyn Navy Yard)

These were the top outer-borough loans in September

These were the top outer-borough loans in September
From left: 410 Tenth Avenue, 745 Fifth Avenue, One Manhattan West and 522 Fifth Avenue (Google Maps, Wikimedia)

Real estate lending bounces back in September in a big way

Real estate lending bounces back in September in a big way
The pandemic is leading to huge losses in value for hotels, malls and other commercial properties (iStock)

Troubled commercial properties see values fall 27%: report

Troubled commercial properties see values fall 27%: report
United Wholesale Mortgage Mat Ishbia and Gores Holdings IV CEO Alec Gores (Photos via United Wholesale Mortgage and Gores)

United Wholesale Mortgage goes public with $16B valuation

United Wholesale Mortgage goes public with $16B valuation
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...