JAKARTA (TheInsiderStories) – Chinese state-owned conglomerate China Merchant Group (CMG) conglomerates has agreed to a US$1 billion deal with Lippo Group for the construction of health facilities in China, local wire reported. The deal is part of Lippo’s plan to expand its hospital business in Asia.
Lippo now has one hospital and 10 clinics in China, 12 hospitals in Japan, four hospitals in Myanmar,100 clinics combined in Singapore and in Vietnam.
James Riady, Lippo Group chief executive did not say how many hospitals Lippo plans on building in China, but he did say most of the new facilities will be specialist hospitals.
On June 2, 2017 CMG Chairman Li Jianhong met in Hong Kong with Mochtar Riady, Chairman of Lippo Group, exchanging ideas about health-care and senior-care industries. At the meeting, Li gave the introduction about Group’s three business sectors, namely transport, finance and real estate, which is the major participant and promoter of “The Belt and The Road” Initiative.
Currently, Group is seizing the opportunity to enter the health-care and senior-care industries under the background of customer-leading economy. Riyadi is looking forward to join hands with CMG in terms of health, insurances and other health services.
“We are willing to work with Lippo Group, a healthcare industry giant, to start full cooperations”, said Li.
CMG is a leading state-owned conglomerate based in Hong Kong, under direct supervision of State-owned Assets Supervision and Administration Commission of the State Council. By the end of 2016, the company had the total assets under management of 6.81 trillion RMB.
CMG, founded in the Self-strengthening Movement in 1872, is a pioneer in China’s national industry and commerce. The company set up the first merchant fleet, the first Chinese bank, the first Chinese insurance company and others, playing an important role in modern China.
In 1978, the company made great contributions to the opening-up by solely-investing and developing Shekou Industrial Zone, the first zone in China open to the world, and launching China Merchants Bank and Ping An Insurance Company, the first joint-tock Chinese bank and insurance company respectively.
China Merchant Group is a conglomerate with three business platforms of industry, finance, capital investment and operating. As for industry platform, CMG covers ports, toll roads, shipping,logistics, zone development, real estate, offshore engineering and trade.
CMG actively participates in the national strategy “The Belt and Road”, owning 50 ports in 19 countries and districts. In 2016, the company’s container throughput reaches 95.77 million TEU (71.93 million TEU on mainland).
The company is the largest toll road investor and operator in China, which has run 8203 kilometers toll roads, bridges and tunnels in 18 provinces. By the end of 2016, the company owns a world-class super oil tanker fleet that is constituted by 39 VLCC and a hand-held order of 14 VLCC.
CMG also owns the largest fleet of VLOC and LNG, with total capacity of 34.79 million tons. After Sinotrans＆CSC was incorporated into CMG, CMG’s logistics business become world-class, with 96 logistics overseas operating centers.
CMG provided urban development and operation business through China Merchants Shekou (CMSK) and Zhangzhou China Merchants Economic and Technological Development Zone (CMZD).
On December 30th 2015, China Merchants Shekou merged with China Merchants Property and (CMSK) was publicly listed on Shenzhen Stock Exchange, realizing an unprecedented achievement of restructuring in the real estate sector.
By the end of 2016, CMSK extended business among 40 cities, with importance attaching to the mutual development among internet,finance and city. CMZD is a national economic and technological zone, with a total area of 56.17 square kilometers.
CMG also performs robust in industry and trade. The company owns Hong Kong’s biggest ship-repair yard. In 2008, CMG invested a world-class ship repair base in Shenzhen’s Mazhou Island. In 2013, CMG purchased Jiangsu Haixin Shipping Heavy Industry’s assets and has become a leading producer of offshore platform.
China International Marine Containers, established by its biggest shareholder China Merchants Group, is the biggest manufacturer of containers and airport facilities in the world. Another subsidiary of China Merchants Group, Hoi Tung Marine Machinery Suppliers Limited has a mature market network and rich experience in maritime trade.
By the end of 2016, China Merchants Bank had 3495 self-service banks and branches over 130 cities in China, including Hong Kong Branch and two wholly-owned subsidiaries of Wing Lung Bank and China Merchants Bank International. It also has branches in New York, Singapore and Luxembourg, and offices in London and Taipei.
China Merchants Securities(CMS) is one of AA level securities in China. By the end of 2016, CMS has 226 operation centers in 114 cities in China. Founded in 2012, China Merchants Capital Management includes China Merchants Funds, Boshi Funds, all reaching AUM over 1 trillion RMB. Also, the company is on the process of resuming Renhe Insurance Company that was established in 1875.
As for investment and capital operations, CMG launched China Merchants Investment Development Company which is mainly responsible for overseas business and China Merchants Venture Capital Management which focuses on technology and internet fields.
While, Lippo Group’s investments in real estate, retail, hospitality and leisure, healthcare, education, media and news, telecommunications, digital technologies and financial services has been driven by our responsibility to the community.
Its healthcare initiative also manages Indonesia’s largest healthcare group, comprising 22 hospitals across the Indonesian archipelago, including Indonesia’s first and only world-class cancer treatment hospital.