Acquisitive Chinese company HNA discloses new ownership
A summary of the top news in Chinese business and technology for July 24, 2017. Part of the daily The China Project newsletter, a convenient package of China’s business, political, and cultural news delivered to your inbox for free. Subscribe here.
Bloomberg reports, “Bank of America Merrill Lynch has told investment bankers to stop working on transactions with HNA for now amid growing concerns about the group’s debt levels and ownership structure.” HNA owns about 10 percent of Deutsche Bank, one of its many investments in an overseas spending spree that has lasted several years. HNA’s ongoing attempt to purchase the hedge fund of new White House communications director Anthony Scaramucci has also attracted interest in the U.S.
In response, HNA disclosed that two nonprofit organizations control 52 percent of the company. The organizations are named Cihang and are based in New York and HNA’s home base of Hainan Island. Bloomberg says that “the figures differ from available data as recently as late last year, when corporate filings showed that a businessman named Guan Jun owned a 29 percent stake via two holding companies. Guan doesn’t show up in HNA’s latest statement.”
- Macro trends
IMF maintains global growth forecasts; China, eurozone revised higher / Reuters
“For China, the IMF expected stronger growth of 6.7 percent in 2017, up 0.1 percentage point from the April forecast. It said China’s growth would still moderate in 2018 to 6.4 percent, but noted that estimate was up 0.2 percentage point from the April forecast on expectations that Beijing would maintain high levels of public investment.”
Winter is coming for Chinese mega deals, but Chinese FDI isn’t going away / Macro Polo
China’s deleveraging campaign notches up small success / Caixin - On-demand services
Ofo sued for $1.3m in wrongful death claim / TechNode - Ecommerce
China online retail sees rapid growth in the first half of 2017 / TechNode
Courier lashes out after JD.com bans its service / Caixin - Trade
Storm clouds build over China solar exports to India / Caixin (paywall) - Stock market
China’s newest Stock Connect sees foreigners beating the index / Bloomberg - Agriculture
Agricultural research grants lure top talent / China Daily
