Daily Pulse: HNA Roadblocks, Geely's Lotus Investment, New Technology Entity

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Debt-laden HNA continues to face challenges in its divestment and restructuring efforts as well as real estate ownership rights. In recent news, HNA Group will sell Radisson Holdings to Shanghai-government controlled hotel giant Jin Jiang International. In other parts of the business, HNA Infrastructure’s [600515:CH] board of directors decided against restructuring plans to acquire a separate HNA subsidiary, Hong Kong International Construction Investment Management (HKICIM) [0687:HK] due to poor timing. Finally, the Committee on Foreign Investment in the United States (CFIUS) stated there were national security regarding HNA Group’s ownership of a midtown Manhattan office tower in close proximity to Trump Towers. Today, A-share markets saw a small lift. SHCOMP inched up 0.03% to 2,795.31, SICOM crept up 0.70% to 8,813.49, and CSI 300 went up 0.22 % to 3,405.02, ChiNext Price Index increased 0.94% to 1,511.71. The Hang Seng Index bumped down 0.84% to 28,355.54.

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Within the auto space, Geely is seeking to invest approximately USD1.9bn into Lotus, a British car manufacturer. Geely is also looking to up its stake in the company, which at present is 51%. It started discussions with Etika Automotive Sdn Bhd, owner of the other 49% of Lotus. In other news, the State Council has created a new cabinet-level body called the National Science and Technology Leading Group. It will oversee national technological developments within planning and strategy and replace the old National Technology and Education Leadership Group.

Eileen Li