Chinese e-commerce giant Suning has been listed by China’s state television CCTV as a company that has made risky overseas acquisitions according to a Global Times report, which has resulted in the company’s shares falling by nearly 6% on Wednesday.
As the program disclosed, some Chinese businesses in the real estate, hotels, cinemas, entertainment and sports sectors had made “irrational” overseas investment. It indicated that Suning’s acquisition of a majority stake in Inter Milan for 270 million euros was a typical example.
In response, a Suning spokesperson said they were pleased to strongly support China’s overseas investment policy. Sun Weimin, Vice President of the group said, “Suning’s industry strategy has been made based on the current status of the Chinese market and their overseas expansion is aimed at promoting the development of the domestic market.
Sun added that they are looking to learn from their international experience and improve the level of domestic soccer in China. The giant Chinese retail group also hope that with the help of Inter Milan, they can expand their overseas retail network and advance the overseas sales of Made-in-China products.
Proofread by Raymond Fitzpatrick