The headline statement, from the president of the Shanghai Business Association, comes on the eve of a meeting with Portugal’s Prime Minister at which investments in banking, real estate, tourism, technology and sports are on the agenda.
The Shanghai Business Association has set aside €10 billion to invest in Portugal with the financial sector top of the shopping list but the Prime Minister's office later denied any meeting was scheduled.
The association's 'president' and suspected fraudster, Zheng Yonggang, let slip the plan for Novo Banco to end up in Chinese hands at a meeting in Lisbon today.
One of the members of the association is Guo Guangchang, the chairman and main shareholder of Fosun which owns the formerly Portuguese insurer Fidelidade, as well as ES Saúde, now Luz Saúde, purchased from Grupo Espírito Santo in the aftermath of its collapse in 2014.
PM António Costa might wish to ask the billionaire Guo Guangchang why he was detained by Chinese authorities in an unspecified investigation in December, 2014 only to reappear in public at a company event a few days later.
"The business is ongoing and the president of Fosun is also involved in the negotiation," said Zheng Yonggang.
The purchase of Novo Banco, among other investments, will be discussed at tomorrow’s meeting.
The government, the Bank of Portugal and the Resolution Fund all are involved in selling Novo Banco at the second attempt. Floating the bank on Portugal’s stock exchange or a direct sale both remain options as does keeping the bank in State hands until its price improves.
Price will be the main factor as the bank of Portugal’s governor, Carlos Costa, needs a base price of €4.9 billion for Novo Banco in order to repay lenders which include the taxpayer. Costa does not need another humiliation after the last Chinese ‘preferred bidders’ came up with around €1.3 billion for the high street lender, leaving a massive financial and politically untenable gap.
Costa already has waved his magic wand to rid Novo Banco of €1.8 billion of senior bonds, sending them to the old BES which rendered them close to worthless. Court cases followed and are continuing.
Novo Banco is in better shape than previously but remains loss making under the direction of Stock da Cunha.
