NEWS
Thursday June 22 2017
Report: China investigates Milan deal

China’s bank regulator has reportedly ordered an investigation into overseas investments, including the takeover of Milan.

The club was bought over by Rossoneri Sport Investment earlier this year, backed by the Chinese investor Yonghong Li.

The new owners have already flexed their financial muscle on the transfer market, signing Mateo Musacchio, André Silva, Ricardo Rodriguez and Franck Kessié.

However, the respected financial newspaper the Financial Times is reporting the lenders in China have been ordered to check the “systemic risk” presented by “some large enterprises” in overseas investments.

As well as Dalian Wanda, Fosun and HNA, the newspaper has seen an email which mentions Zhejiang Rossoneri Investment.

Chinese regulators are worried by the use of high-risk financing methods, including issuing high-interest bonds to investors.

Li’s group famously required investment from the American hedge fund Elliott Management to gt the deal over the line.

In addition, there is concern in Beijing about the high prices paid for overseas assets, with fears the lenders will never be able to recoup their money.

Suning Group bought Inter for around €270m, while Milan was sold for a total of €740m, including the debt of €220m.

No-one connected to any of the companies involved has been accused of any wrongdoing, but the share price of the companies being investigated has dropped.

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