by Bloomberg News published a report stating that Chinese regulators require leading banks and public enterprises in China to audit their finances. Also, any commercial relation with Fosun International must be reported straight to its policymakers. The news came out earlier today.
Chinese Regulators Demand Openness From Banks
The China Banking and Insurance Regulatory Commission (CBIRC) has asked commercial banks and public firms to assess their financial report and mark out any business interaction with Fosun.
It is a measure to ensure these firms are well aware of their financial positions. Likewise, to avoid the risk of liquidity usurp. There were citations of entities involved in the report.
Fosun is the founder of Med Resort, a brand club in China, and Lanvin, a French fashion house. Apart from these two ventures, the company controls many other businesses. It is also a shareholder in some of the top firms in China.
Reuters requested Fosun’s comments on the ongoing situation but did not get quick feedback. Neither did CBIRD promptly address the story.
The report further specified that regulators have no intention of interrupting Fosun’s activities. Lenders may continue funding the firm, and debtors may pay off their debts. In general, its business operations should not get hampered.
Bloomberg received a response from a delegate from the organization, who declared that they were not aware of such notice from the government. Furthermore, he noted that Fosun is thriving and sturdy.
“We have not received notifications from the authorities about the sudden development. It came to us as a surprise because Fosun is healthy and resilient to challenges,” he said.
Guo Guangchang, the chairman of Fosun and a billionaire peaking among the leading entrepreneurs, is a powerful man in the country. The chairman was an avid negotiator in Beijing before the republic regulated international trade some years ago.
Other Agencies Acting As Regulators In China
Apart from CBIRC, SASAC also demanded commercial banks open up about their dealings with Fosun. The State Assets Supervision and Administration Commission requested information on lending, stock trading, and others as may exist. The report by Bloomberg contains this information.
The State Asset Supervision and Administration Commission has not said anything since to confirm what the report says.
A representative stated that an assessment of the company’s activities revealed it is only engaging in its usual business. Any company it deals with is a business associate and nothing more.
He said, “We got questioned, and the state asset regulator only discovered that our practice is part of our customary research. Other companies were also involved.”
However, authorities are still investigating the matter for more information. While the main focus is on state banks and ventures, Fosun is also subject to scrutiny by the government. China seeks to look after its organizations by reviewing their financial situations.
