After banks received orders from the Chinese government last week to stop funding Dalian Wanda Group’s expansion, Sunday revealed that the orders came down from China’s President Xi Jinping.
The order last week was handed specifically to state owned banks to stop funding overseas acquisitions by Dalian Wanda Group, HNA Group Co., Anbang Insurance Group and Fosun International Ltd.
Over a mere 4-year period, the 4 companies have spent a cumulative US$55 billion on international acquisitions, accounting for 18% of the total spent by Chinese companies on foreign acquisitions over the same time period.
The funding limits are seen to be a government attempt to limit the power of the rapidly growing private sector and to re-assert more government control.
Full Content: Forbes