Chinese investors’ exit may not be a bad thing
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.
Why read this story?
Editor's note: 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 global investments. Likewise, Alibaba has been an early investor in Zomato and it isn’t unusual for it to sell a part of its stake now that the food delivery firm has listed. As for Xiaomi, India has been anything but a smooth ride, especially after the seizure of over Rs …
More in Business
You may also like
PhonePe’s transition from payments to a financial services company is incomplete
The company’s IPO plans come amid weak numbers, slow growth of new platforms, challenges in its core payments business and a rather dull stock market.
Eternal, Swiggy, Zepto are all unskilled worker arbitrage businesses
Exploitation of unskilled workers is at the heart of quick-delivery service businesses in India. They should be valued for what they are and not what they pretend to be, a trait that has taken a devious form of wanting it both ways.
There’s more to Paytm’s optimistic results than meets the eye
Cost-cutting measures and growth from a low base make Paytm’s numbers appear better than they are. What comes next will be closely watched by investors who now have other fintech bets to consider.