Foreword：

Mr Guo, your investment company Fosun has held a shareholding of 19.2% in the new BHF-Bank and the Kleinwort Group for the past few days. Here, a German private bank with a traditional heri¬tage, there a rather young Chinese investment company – how do they fit together?
Very well, because we have taken over an excellent management team here in Frankfurt and by working together we will be able to develop new opportunities for growth. This applies for the wealthy private clients of BHF-Bank on the one hand, and for the Chinese entrepreneurs on the other hand. With our assistance, BHF-Bank can become a bridge for German and Chinese entrepre¬neurs alike.

Is there a need to have such a bridge in China too?
Absolutely yes, an increasing number of Chinese entrepreneurs are looking for competent partners who can management their assets abroad as well.

You have recently also invested in insurance companies, for example in an insurance provider in Portugal. Are you expecting synergies in coopera¬tion with BHF-Bank?
The business with BHF-Bank has been audited for a total of two years, and at the beginning of the audit we had not yet planned to invest in Portugal. However, the fact is that it could probably well lead to the develop¬ment of some joined-up products.

Why should entrepreneurs or in¬vestors who are interested in the Chinese market come to BHF-Bank and Fosun in future – and not, for example, go to other largest institutions like HSBC?
Very simple - Because we know Chinese in¬dustry and the China market inside out. We have holdings in a large number of compa¬nies. We have an in-depth understanding of China, as well as a global scope.

And BHF-Bank?
For example, it played a role in the listing process of Fosun Pharma, a subsidiary of Fosun. This was a very good business deal for all those players involved – and therefore also for the bank and most importantly for the clients of BHF. And you shouldn’t forget that one of the big banks like HSBC is never going to be able to concentrate on individual clients in the same way as BHF.

Do you get a sense of any resistan¬ce when you invest in companies or financial services providers abroad and particularly in Europe, or do you get a friendly reception?
We are received in a very friendly way. This is certainly also because we always make a commitment as investors for the long term, we want to develop business with our links to China, and our primary concern is not about cutting personnel and then getting out again quickly. We want to be very transpa¬rent, socially responsible and support the management team of our invested compa¬nies.

And that’s why you are often com¬pared to Warren Buffett.
The investment strategy we pursue is akin to that used by Warren Buffett and his investment company Berkshire Hathaway, this concept forms the platform for all our inves¬tments. However, Fosun has also its unique “twin-driver” development model: we will leverage the “insurance-ori¬ented comprehensive financial capability” driver as a major financing tool to connect the Group to long term high quality capital. And we will continue to pursue and im¬plement the “profound industrial foothold based global investment capability” driver, adhering to the Fosun‘s value investing prin¬ciple and be a value investor. As far as companies are concernred, the most important thing is continuous growth, enhancement of corporate efficiency. We hope we can create value to all the companies that we have invested.

For BHF-Bank, are you working towards specific targets for returns?
No, we have not defined any targets for our¬selves that you could put a specific figure to.

I would like to clarify one issue: Your investment in BHF will soon be exchanged for shares in the majo¬rity BHF purchaser, RHJL, won’t it?
Yes, that’s right. However, this is a technical matter. We have gone into this investment in order to develop BHF-Bank, this is the core value of the investment.

Are you planning any other investments in Europe?
We have been watching out for opportunities. However, at the moment we intend to con¬centrate fully on the two new acquisitions in Portugal and of course support BHF here in Frankfurt.

Could you also envisage purchasing a bank in the United States? You have uncharted territory there from that perspective.
No, we don’t have any plans on that front.

Should we be concerned about the banking situation in China? Recent¬ly there has been a lot of talk about the need for big write-downs on non-performing loans there?
There are some areas where adjustments need to be made. It’s quite true. However, there is absolutely no reason to worry about the Chinese banking sector because there will be no crisis, everything is under control. China is well on the way to maintain a grwoth of more than 7% every year, although some companies have higher liabilities, but the national debts are in the normal range, individual consumers have almost no debts.  For instance, if the government needs to promote the social security system reform, individual consumers are also ready to increase expenses for this. 

Your business model is undoubtedly directed towards generating consis¬tent growth in China through your industrial footholds. However, you would probably also cater for the financial and senior care of people in the future, isn’t it?
Yes, we are focusing on the aspirations of the rapidly expanding middle class in China. We want to offer them innovative financial and retirement products on one hand, but also those excellent brand products or vacation products provided by Club Med that we have invested.

Is this business model effective?
It’s effective of course. At present we operate two Club Med resorts in China, the third one will be open soon. I can image sometime in the future around 30 Club Med resorts will be in operation in China. 

The air pollution of China is not obstacle for the economic growth, is it? 
I don’t think so. Because all Chinese want to solve this problem. Historical experience shows that we will certainly have the ability to solve this problem too.  For environmental protection technology companies, particuarly German companies, this is a huge opportunity. We pay much attention to the opportunities in this area.  Please don’t forget, London and Frankfurt had once serious air pollution problems, the reality proves that this problem can be solved.  We can also learn from the experiences from what Germany has made to solve this problem.

As far as you are concerned, how important is the setting up of a RMB clearing bank in Frankfurt soon?
This is a very good sign and in view of the holding we have taken in BHF-Bank it has come at a very good time.

Background：