How the Virus Finally Killed a High Roller
Bloomberg Businessweek|March 09, 2020
HNA was once a symbol of an ascendant China. Then debt—and coronavirus—did it in
Matthew Campbell, Daniela Wei
How the Virus Finally Killed a High Roller

As it bought and borrowed its way to becoming one of the country’s most prominent private companies, travel and finance conglomerate HNA Group Co. sought to embody a new brand of Chinese capitalism: aggressive, unafraid of risk, and above all global, with assets and operations on every inhabited continent. Its co-founder and chairman, a devout Buddhist named Chen Feng, styled himself as a sort of Asian Warren Buffett, advocating a “harmonious” management style based on Confucian principles and boasting that HNA would one day be among the world’s 50 largest corporations.

That dream, it turned out, couldn’t withstand problems close to home. On Feb. 29, the government of Hainan, the island province where HNA is based, began taking control of the company, appointing new leaders and assuming management of its debts. The move, the first step in what could be a slow-motion takeover, will see HNA’s remaining assets sold off, according to people familiar with the matter. It paves the way for a humiliating end to one of China’s most remarkable corporate stories, one that saw a little-known conglomerate become the core of an international financial empire, all run from an out-of-the-way resort island in the South China Sea.

The proximate cause of HNA’s downfall is, of course, the new coronavirus outbreak that brought China’s economy to a virtual dead stop, taking an especially heavy toll on travel and tourism. Globally, about 80% of China flights have been halted, and the International Air Transport Association estimates the virus epidemic could cost the industry almost $30 billion in lost revenue.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEKView all
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023