Fosun International shares have lost nearly one-fifth of their value this month since the announcement of the divestment of a core unit, putting the nearly $40bn of debt amassed by Chinese billionaire Guo Guangchang under increased scrutiny. Fosun International’s Hong Kong-listed shares closed at their lowest point since December 2012 on Wednesday after losing 18 per cent since September 2, the day the group announced the partial divestment of a core Chinese pharmaceutical unit.
The Shanghai-based tycoon had made aggressive acquisitions to build an expansive business empire that includes English football club Wolverhampton Wanderers, Portugal’s biggest bank Millennium BCP and French resort group Club Med.
But Fosun has been subject to increasing scrutiny from rating agencies and investors over its debt in the past several months. The Financial Times reported in July that Moody’s estimated Fosun’s total consolidated debt stands at Rmb260bn ($38bn), though the company maintained at the time it was in a “sound and healthy” financial position.