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Fosun Plans Japan Investments as Quake Spurs Funding Needs

Guo Guangchang, chairman and chief executive officer of Fosun International Ltd. Photographer: Jonathan Drake/Bloomberg
Guo Guangchang, chairman and chief executive officer of Fosun International Ltd. Photographer: Jonathan Drake/Bloomberg

March 31 (Bloomberg) -- Fosun International Holdings Ltd., controlled by billionaire Guo Guangchang, plans to invest in Japanese companies which will be seeking funds for rebuilding after the nation this month suffered its worst earthquake.

Fosun, which has property, steel and resort businesses, may speed existing talks with some listed companies, and wants to invest in the medical services sector, Chief Executive Officer Liang Xinjun said in an interview in Hong Kong.

The Nikkei 225 Stock Average has fallen 5.3 percent since the March 11 earthquake and tsunami left more than 27,000 dead or missing and caused as much as 25 trillion yen ($301 billion) in damages. Fosun’s Guo is embarking on a series of expansions that will help it meet rising consumer demand in China, which the Chinese government has forecast will become the world’s biggest luxury-goods market by 2015.

“Japanese shares have fallen quite a lot after the earthquake and the nuclear crisis,” Liang said March 29. “Companies there need capital for reconstruction. To us, it’s a chance for value investment.”

Fosun rose 1.9 percent to close at HK$5.97, the highest stock price since Feb. 16, in Hong Kong trading.

The company is still seeking to invest in luxury clothing and cosmetic brands in Europe, Liang said, reiterating comments made by executives last July. Fosun has a 9.5 percent stake in French resort operator Club Mediterranee SA.

To contact the reporter on this story: Fion Li in Hong Kong at fli59@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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