Chinese groups that have invested in Portugal in the last several years have seen their market capitalisation lose more than 100 billion euros since the most recent devaluation of the yuan and subsequent downturn in stock markets, reports the Portuguese newspaper Diário Económico.
Fosun International has performed worst in relative terms, depreciating by 29.8 percent on the Hong Kong Stock Exchange. In Portugal it controls the Fidelidade (insurance), Luz Saúde (health) and Redes Energéticas Nacionais (energy) companies.
Figures compiled by the newspaper and then adjusted to euros indicate that Fosun International lost 4.9 billion euros and is now worth 9.8 billion euros.
In absolute terms, the Industrial and Commercial Bank of China (ICBC) has lost the most. Although the relative loss (-12.15 percent in local currency) is less, it accounts for 54 billion of the 105.9 billion euros lost from those groups’ capitalisation in August; it is now worth 194.3 billion euros.
During this period Beijing Enterprises Water (acquired Compagnie Général des Eaux Portugal in 2013) and the Bank of China have also posted losses above 12 percent.
Bank of China, which like ICBC is represented in Portugal, has lost 37.5 billion euros, while Beijing Enterprises Water saw nearly a billion euros disappear.
Haitong, which according to Banco Espírito Santo de Investimento, has suffered the third most significant relative loss, -22.61 percent, falling 8.7 billion euros to 17.9 billion euros.
The 105.9 billion lost by the aforementioned companies due to the current economic situation does not include figures from Anbang (Novo Banco), China Three Gorges (EDP) and State Grid (REN) because they are not quoted on the stock exchange. (Macauhub/CN/PT)