Roc and Fosun

I wonder if the Fosun problems with Thomas Cook falling over will have any implications for ROC, which is a wholly owned subsidiary of Fosun. Fosun was the largest shareholder in Thomas Cook and was unable to complete a rescue package, because of the need for an extra 200 million pounds.

The following from the AFR suggests they may become more cautious. Could they bail out from the deal with Buru? Pure speculation, but at least we should be aware the parent is under pressure.

"The marked change in Chinese corporate behaviour partly reflects the increased pressure being applied by Beijing.

HNA and Fosun – along with Anbang Insurance and Dalian Wanda Group – were once China's most aggressive overseas investors, spending tens of billions of dollars to snap up assets around the globe.

But in mid-2017 these high-flying private conglomerates came under intense scrutiny from China's banking regulator as Beijing sought to clamp down on soaring corporate debt levels.

Chinese authorities were alarmed by the rising risk and leverage these groups were taking on, and their intricate and often opaque ties with the country's banks.

In response to this pressure, many of China's biggest and most debt-laden conglomerates began to unwind their acquisition sprees by offloading foreign assets.

Since the beginning of the year,Chinese companies have agreed to sellabout $US40 billion worth of international assets, up from $US32 billion for the whole of last year, according to data from Dealogic. At the same time, their acquisitions of overseas assets have dwindled to $US35 billion.

This means that for the first time in a decade Chinese companies are now net sellers of global assets.

And this trend is likely to continue as credit conditions keep tightening for privately owned Chinese corporates, whose ability to access funding was dealt a blow in the wake of Beijing's takeover of the struggling Baoshang Bank earlier this year."