Source: Reuters. China’s banking regulator has ordered a group of commercial banks to assess their exposure to offshore purchases by a handful of acquisitive Chinese corporate groups, two people familiar with the matter said on Thursday.
The companies include HNA Group, Dalian Wanda Group Co., Anbang Insurance Group, Fosun International Ltd and Zhejiang Luosen, the firm behind the purchase of A.C. Milan football club earlier this year, one of the sources said.
Chinese financial journal Caixin reported on the investigation earlier on Thursday.
The China Banking Regulatory Commission (CBRC) made the request as it moves to better control potential systemic risk as domestic companies move to acquire more assets in global markets.
Liu Zhiqing, deputy director general of the prudential regulation bureau of the CBRC, declined to comment on the reported communication to banks.
Shares in several of the companies whose loans the banks were asked to assess fell sharply on Thursday.
Shares in Fosun International fell as much as 9.6 percent in Hong Kong trading on Thursday, while shares of HNA Holding Group Co Ltd fell more than 6 percent.
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