Addendum
HNA Group’s Chen Feng mounts charm offensive
July 1st 2017
Following the news that powerful regulator, the China Banking Regulatory Commission (CBRC), had launched an investigation into systemic risk at some of the Mainland’s largest global investors, including the HNA Group, its normally media shy chairman, Chen Feng, 66, hit the media trial in Hong Kong to defend the fiscal reputation of his conglomerate – and have a go at Hong Kong’s biggest property developers while he was at it. Read More »
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In a number of interviews with local media, Chen Feng challenged the constant rumours that the group is over-committed and that its overseas investments are funded in large part by high interest financial products on the Mainland, including peer-to-peer lending platforms.
“HNA Group has never owed the bank any money in 20 years and has never delayed paying money,” reported the Sing Tao Daily on June 26.
He added that U.S. Bank, Morgan Stanley, had approved a US$300 million loan, without mortgages or guarantees, to the group’s leasing arm, Bohai Capital Holdings, on June 23. The lessor controls several Mainland leasing companies as well as global lessor, Avolon Holdings Ltd, and Hong Kong Aviation Capital.
He continued in a local vein: “land prices are too high in the Special Administrative Region and they are influencing the city’s effectiveness. Hong Kong’s property market is dominated by a few large consortiums, leading to high home prices which affect locals’ livelihoods. Hong Kong people should not have to work their entire lives for a small flat. The government should focus on livelihood issues.”
When it came to business however, the tycoon believed Hong Kong, where the conglomerate has its global headquarters, was a positive platform for the group. Two HNA Group controlled airlines, Hong Kong Airlines and HK Express, hold 17% of the market, he said, and added their arrival in the city had forced competing carriers to reduce their fares.
Last year, HNA Group made headlines when it purchased four sites at Hong Kong’s former Kai Tak Airport for US$3.6 billion, which was almost double the price predicted by property analysts. It also has built up a 9.9% equity in Deutsche Bank in the last 12 months.
