Authorities question Chinese property developer in bid to acquire Greece’s largest insurer

Shenzhen-listed Rongfeng Holding Group Co. have been asked by regulators to substantiate their ambition to buy a controlling stake of Greece’s largest insurance company, reports Caixin Global, amid doubts that the Chinese company does not have the assets to execute the deal.

Rongfeng, along with affiliate Shanghai Gongbao Commercial Consulting Co., recently announced plans to buy 75% of Greek Ethniki Hellenic General Insurance S.A. The acquisition will cost RMB 4.2 billion, however, which far exceeds the buying partnership’s combined net assets.

Shenzhen exchange is asking for further documentation to show where the money will be coming from, and what the potential risks could be.