International Corporate Finance

INTERNATIONAL CORPORATE FINANCE 50 LEADERS

Leaders League. What are your invest-

ment strategies?

Guo Guangchang. Our current strategies

are very specific and well-defined, namely

the commitment to the “insurance + in-

vestment” strategy underpinned by twin

drivers, one being “insurance-oriented

comprehensive finance” and the other

“China-rooted investments with global

industrial integrated capability.”

As such, insurance and comprehensive fi-

nance firstly represent the most crucial di-

rection for Fosun’s current and future in-

vestments. To date Fosun has invested in

seven insurance companies domestically

and internationally, as well as several Ger-

man and British private banks. Fosun’s si-

zable, global comprehensive

financial platform centered

on insurance has developed

an initial profile, and the

investment projects have

also demonstrated positive

trends of development. For

instance, the Portuguese firm

Fidelidade, in which we have

invested over €1 billion, and in which Fosun

owns 84.986% of equity interests, achieved

net profits of over €100 million and approxi-

mately €210 million in 2014 and the first

half of 2015, respectively. Moving forward,

Fosun will continue to designate insurance

and comprehensive finance as its most cru-

cial investments, and will continuously en-

hance its efforts to combine the resources

available in the global financial market with

China so as to contribute to the development

of the domestic financial market.

In terms of investment, Fosun has always

been committed to combining China’s

growth momentum with global resources. In

other words, we hope that the enterprises,

products and services in which Fosun

invests are capable of meeting the demands

of the general public in China and adding

to the escalation of China’s momentum.

Therefore, we have put forward the concept

of “CIPC”, which means going from Consu-

mer demands (C) to Investment (I) and

then onward to Products and services (P),

and finally back to Consumers’ needs (C).

At present, we believe that the largest

demands from Chinese consumers arise

in Healthcare and Happy & Fashionable

Lifestyle, two areas in which Fosun’s in-

vestments are concentrated. For this rea-

son, Fosun owns Fosun Pharma and Sino-

pharm Group, and has invested in United

Family Hospital, the largest Portuguese

healthcare chain group Luz Saúde and

Guahao.com, among others. Fosun has

already gained very extensive expertise in

its healthcare segment, and hopes to ac-

quire even more. Regarding its Happy &

Fashionable Lifestyle segment, Fosun has

privatized France’s Club Med, invested in the

Atlantis Hotel in Sanya, Bri-

tain’s Thomas Cook, Canada’s

Cirque du Soleil, Hollywood

movie production company

Studio 8, as well as American

women’s apparel brand St

John Knits. We have brought

all these first-class Happy

and Fashionable products

and services from around the world to China

in order to serve our Chinese customers.

Leaders League. You humbly call yourself

“a Chinese disciple of Buffett,” while Fo-

sun has also been labelled “the Berkshire

of China.” What strengths of yours and

Fosun’s might lead you one day to surpass

your “master” and source of inspiration?

G. G. Fosun is more than a student of

Buffett. Over the course of Fosun’s histo-

rical development spanning twenty-three

years, we have always learnt from the

world’s most distinguished enterprises such

as Carlyle and Hutchison Whampoa. Fosun

has become very aware of its identity as a

globalized investment group, and therefore

when weighing different approaches, we rea-

lize that the “insurance + investment” model

of Buffett and Berkshire is even more worthy

of our study.

I believe that Buffett’s success does not lie in

being smarter than others, but rather in the

Fosun is the product and testimony of China’s economic miracle: founded in 1992, it

has today grown into China’s largest privately-owned investment conglomerate and has

invested approximately $31 billion in M&A. Its co-founder and chairman, Guo Guang-

chang, is a down-to-earth visionary, discreetly ambitious and practically philanthropic.

GUO GUANGCHANG

Chairman, FOSUN

ENTERPRISES

ARE THEMSELVES

THE BEST FORM OF

PHILANTHROPY

“Fosun is more than a student of Buffett”

HIS MOTTO

“The investment project of which I am most

proud is the next one.”

HIS REPUTATION

Regarded as the Chinese “Warren Buffett” by

western media.

THE SECRET OF HIS SUCCESS

Combining China’s growth momentum with

global resources.

EXPRESS BIO

1989: Guo Guangchang graduated from

Fudan University with a BA in Philosophy

1992: Founded Guangxin Technology

Development Company Ltd., among

the first companies to use scientific

methods in market research in

mainland China

1994: Became Chairman of Fosun Group

2007: Fosun International Limited,

the parent company of Fosun Group,

was listed on the main board of the

Hong Kong Stock Exchange