Fosun's Lost Its Head, But Not Its Way

As compatriot HNA Group Co. spends like there's no tomorrow, Fosun International Ltd., the first of China's big conglomerates to embark on an overseas buying spree, is selling assets and turning inward. That's a smart move.

The company, whose businesses range from insurance to tourism, reported a 28 percent rise in 2016 net income Tuesday to a record 10.3 billion yuan ($1.5 billion), largely on the back of cost cuts and gains from investments at home, including the sale of some shares in Shanghai-listed firms. Perhaps more importantly, Fosun, whose CEO Liang Xinjun is leaving for health reasons, has trimmed a debt load that's been aggravated by acquisitions including resort operator Club Med, Canada's Cirque du Soleil and Portugal's largest insurer.