Beijing may be tightening up its capital controls, but the government is also taking steps to clear the path for more overseas acquisitons, following a recent move by the State Council. If there is an uptick in cross-border deals, they may not involve Anbang Insurance, however, depending on the outcome of an investigation that looks increasingly scary. Read on for all the details.
China is planning to remove the need for State Council approval for large, sensitive outbound deals and will allow Chinese companies to vie for the same target, a move likely to further boost record overseas acquisitions by Chinese companies.
China’s chief outbound investment regulator, the National Development and Reform Commission (NDRC), has published draft rules aimed at both speeding up approvals and allowing head-to-head competition between Chinese bidders. Read more>>
Anbang Insurance Group and local competitors are being examined by China’s insurance regulator as concerns grow about the sector’s aggressive investment policies.
The order to inspect Anbang, along with Shenzhen-based Funde Sino Life Insurance and at least one other group comes from the highest echelons of the central government, according to a person with close ties to Beijing. Read more>>
Hong Kong conglomerate Wharf remains optimistic despite plunging retail sales at two of its major malls because an upbeat mainland Chinese property market is exceeding expectations.
Retail sales at the company’s two flagship malls, Harbour City in Tsim Sha Tsui and Times Square in Causeway Bay, dived by almost 20 per cent year on year in the first quarter. Read more>>
AMC Entertainment Holdings Inc., the U.S. theater chain controlled by Asia’s second-richest man, is assembling a bid for Odeon & UCI Cinemas Group valuing the European company at as much as 900 million pounds ($1.3 billion), according to two people familiar with the matter.
AMC, majority owned by Chinese billionaire Wang Jianlin’s Dalian Wanda Group, recently began preparing an offer for the cinema chain owned by Guy Hands’s Terra Firma Capital Partners Ltd., the people said, asking not to be identified because the matter is private. Read more>>
Just as Chinese builders’ dollar bonds deliver twice the returns of Asian junk notes, S&P Global Ratings is predicting record downgrades. That discord hasn’t gone unnoticed among investors.
S&P took 15 negative actions on China’s developers this year through May 6, versus 12 in the year-earlier period, and it foresees unprecedented ranking cuts in 2016. Read more>>
Hang Lung Properties chairman Ronnie Chan Chichung says China is heading for L-shaped economic growth and it will take some time to recover but it should have little impact on sound financial firms.
L-shaped economic growth represents a decline followed by stability. “We don’t worry because Hang Lung remains in strong financial health,” he told a media briefing to launch his book ‘25 Years In Retrospect’. Read more>>
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