Fosun Says Report on Regulators Asking Banks to Examine Fosun Exposure is ‘False’; Beijing SASAC Requesting SOEs to Examine Exposure to Fosun is Normal Information Gathering Practice

Fosun International has said in a statement to investors that in response to queries the company sent to China Banking and Insurance Regulatory Commission (CBIRC) and Shanghai CBIRC, the regulators confirmed that they had not requested that commercial banks investigate their financial exposure to Fosun. The company added that offshore media reporting claiming the contrary is “false”, according to two sources familiar with the matter.

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The company added that it has kept close contact with the regulatory departments and conducted its operations in compliance with legal requirements, adding that the operations of its different business sectors are in normal order, the same sources said.

The company, in response to a circulating notice showing that the Beijing State-owned Assets Supervision and Administration Commission has requested state-owned enterprises (SOE) under its supervision examine their exposure and collaborations with Fosun - including equity investments, loans, project contracts, guarantees and business collaborations - told investors that this request is normal Beijing SASAC practice, according to the sources.

The company noted that the regulator makes such requests to gather information about enterprises which are experiencing significant market attention and Beijing SASAC has also made similar information requests involving other companies, said the same two sources.

Below is Fosun International’s capital structure: