The actions of Fosun and Alibaba could spark a trend, but it is unlikely to hurt as their reasons for selling shares have little to do with India.
In the last couple of days, there have been reports of at least two large Chinese investors looking to exit or reduce their investments in Indian companies. The Fosun Group was reported to be considering the sale of its controlling stake in Hyderabad-based drugmaker Gland Pharma while two subsidiaries of Alibaba were keen to pare their investments in Zomato through open market sales (a block deal for over 3% of the food delivery company’s shares took place on Wednesday). Even Xiaomi Corp. was reported to be looking to exit its investments in the Indian startup ecosystem.
Normally, these actions wouldn’t really make headlines. Fosun is a large conglomerate that is reeling under debt back home. So it should be par for the course for it to shed some of its
Surendar helps lead the newsroom at The Morning Context as managing editor. Over the years, Surendar has worked across the pharmaceuticals, process engineering, diamonds and jewellery industries, as well as a stint as an equity research analyst. In his long career as a business journalist, he has been the national business features editor at Times of India, the business editor at India Today and led a team of feature writers in Fortune India, where he also conceptualized the only ranked list of India’s most powerful women in business. He was part of the founding team at Forbes India and interned and published in The Times, London. His areas of interest include large companies and entrepreneurship.