Jardine Matheson's new generation make their name with China car dealership investment
Jardine Matheson has made a big bet on a mainland car dealer, with its heirs to the throne setting their sights on China's consumer sector
British hong Jardines has zoomed back into the spotlight after a HK$5.6 billion bet on a mainland car dealer last week.
The conglomerate, which has a vast business portfolio ranging from real estate, restaurants and car dealership to insurance, luxury hotels and IT services primarily in the Asia-Pacific region, has set its sights on the mainland's robust consumer sector.
Last week, it made its first big investment in a listed mainland company by buying shares and convertible bonds in rival Zhongsheng Group, which will eventually enable it to take up to a 20 per cent stake in the company. Jardines, which has already had a dealership network of about 29 outlets across the mainland, will have the network expanded via Zhongsheng's 163 dealerships across 15 provinces trading mostly Toyota and Mercedes-Benz.
The investment comes at a time when the mainland's car market is facing headwinds following the government's attempts to limit car sales in a bid to ease traffic snarls and reduce pollution.
"It is a business empire no different from Cheung Kong, Henderson Land, Wheelock and New World Development in the sense that they are controlled by families with deep roots in Hong Kong," said corporate governance advocate David Webb.