Fosun acquisition opens up new markets for Luxembourg private bank
Regulations and capital controls remain a burden for mainland Chinese investors seeking to diversify assets abroad
Chinese investment into Europe and North America is under scrutiny once again, but for one company from Luxembourg at least, gaining a Chinese parent has presented it with a route to expand in Asia.
In September, private bank Hauck & Aufhäuser was acquired by Chinese conglomerate Fosun. Last week, representatives of the company visited Hong Kong and Shanghai, along with a group of four associated fund managers, to explore the opportunities that this new relationship could provide.
“Before Fosun stepped in, we had never thought about bringing our funds or our clients to China,” Reinhard Pfingsten, Hauck & Aufhäuser’s managing director in Frankfurt, told the South China Morning Post.
“However, now we have a new network that can open doors for us and help with regulatory issues, allowing us to bring our own competencies as asset managers to China and Hong Kong investors, offering them a chance diversify their assets by investing abroad.”
Chinese investment in Europe is in the spotlight at the moment. Earlier this month, the German economy Minister Sigmar Gabriel reopened a review of the takeover of semiconductor equipment supplier Aixtron by China’s Grand Chip Investment. ChemChina’s takeover of Swiss agribusiness-giant Syngenta is also facing scrutiny from the European Commission.
In addition, the European Chamber of Commerce said in its position paper this year on the subject of overseas investment: “It is an increasingly serious concern that reciprocal market access has yet to be fully extended to European business in China.”