Executive Summary

• We expect Fosun International’s credit metrics to remain supported by the stable to improving performance of its core investments in FY26, alongside gradual deleveraging through non-core asset disposals in the medium term; on a relative value basis, its $ bonds offer value compared to China BB-rated peers and broader Asia HY investment holding names, and can see potential for spreads to tighten by 30 bp.

• Fosun is a Hong Kong incorporated investment holding company listed on the Hong Kong Stock Exchange since 2007; it is 73% held by Fosun Holdings, which is in turn controlled by Guo Guangchang, co-founder and chairman, and Wang Qunbin, co-founder and co-chairman.

• Fosun has four business segments – health, happiness, wealth (insurance and asset management) and intelligent manufacturing; it operates as an investment holding company, making strategic decisions on acquisitions, divestments and financing over its portfolio assets.

• We (1) valued Fosun’s portfolio assets as part of the loan-to-value analysis, (2) analyzed its key assets, including Fosun Pharma, Yuyuan, Fosun Tourism Group, Fidelidade, Banco Comercial Português, Peak Reinsurance, and Hainan Mining, and (3) reviewed its holding company-level capital structure and liquidity.

• Fosun’s credit profile is underpinned by diversified investment portfolio across sectors and geographies, improving access to bank and capital markets, as well as the strong ability and willingness to monetize assets; these strengths mitigate concerns over its volatile income stream and heavy reliance on short-term financing, volatility in portfolio value on mark-to-market of listed assets, lack of transparency around unlisted portfolio assets, underperformance of certain subsidiaries/investments, as well as key man risk.