Wanda under scrutiny, China’s Black Monday crash and other stories you may have missed
What’s the story: Suning Holding Group, one of the China’s top home appliance retailers, which made its name worldwide last year by buying Italian soccer club Inter Milan, saw its shares and bonds plummeting after state broadcaster China Central Television questioned the rationale of the deal.
Why it matters: Suning is one of half a dozen among Chinese asset buyers that have come under increasing regulatory scrutiny for their outsize acquisitions, amid government concern about debt levels, and capital flight.
What’s the story: More than 2,800 stocks fell across Chinese stock markets on ‘Black Monday,’ with nearly 500 of them plunging by their 10 per cent daily allowable limit, as a financial work conference of the Chinese leadership sparked fears that the financial industry would face a prolonged period of increased scrutiny.
Why it matters: The ruling Communist Party is anxious to maintain political, economic and social stability as it heads into a meeting in autumn to elect a leadership rank that will lead the country for the next five years. Several of the biggest asset buyers under regulatory scrutiny are bellwether stocks on China’s US$7 trillion stock market.
What’s the story: China’s bank regulator has instructed the country’s largest lenders to put six of magnate Wang Jianlin’s overseas acquisitions under the spotlight for touching a red line on foreign investments, according to several people familiar with the matter.
Why it matters: Wang Jianlin’s Wanda Group is the world’s largest cinema operator, in the process making him China’s wealthiest businessman. Wanda is one of the largest asset buyers globally since 2012, owning stakes in cinemas, a Spanish football club, a yacht builder and the global rights to the Iron Man triathlon races.
What’s the story: Free-spending Chinese travellers are becoming increasingly sophisticated, demanding more sightseeing and dining experiences, rather than just visits to fancy shopping malls, a survey by booking website Hotels.com has found. But what they want the most from hotels are still traditional facilities, such as kettles and free access to the internet.
Why it matters: As many as 200 million Chinese tourists are expected to travel the world by 2020, which will make or break many economies that aren’t prepared to receive them.