Fosun Weighs Sale of 20 Percent Stake in BCP as Chinese Conglomerate Seeks to Raise Cash

Chinese conglomerate Fosun International is weighing options for its 20.45 per cent stake in Banco Comercial Português (BCP), Portugal's largest listed bank, including a potential sale, according to a report by Expresso confirmed by Bloomberg and Reuters.

The holding — acquired over the past decade as part of Fosun's aggressive European expansion — is no longer considered strategic, Expresso reported on Thursday, as the Shanghai-based group accelerates efforts to raise cash, cut debt, and streamline its sprawling portfolio.

A Decade of Chinese Investment Under Pressure

Fosun entered Portugal's banking sector in the years following the eurozone debt crisis, gradually building a commanding position in BCP alongside major investments in insurer Fidelidade, which it controls with an 85 per cent stake, and healthcare group Luz Saúde.

At its peak, the conglomerate was one of the most visible foreign investors in Portugal, a fact that successive governments cited as proof of the country's attractiveness to international capital.

But Fosun's fortunes have shifted dramatically. The group issued a profit warning in March after booking a 23.4 billion yuan (approximately USD 3.39 billion) loss for 2025 — five times larger than the previous year's loss — driven by impairments on real estate projects and goodwill write-downs on non-core assets.

BCP Thriving, But Fosun Needs the Exit

Ironically, BCP itself is performing strongly. The bank reported a record net profit of EUR 1.02 billion in 2025, a 12 per cent increase on the prior year, and has raised its dividend. Its share price has surged alongside Portugal's PSI index, which recently touched its highest level since 2008.

For Fosun, however, the stake's value is precisely what makes it an attractive asset to liquidate. At current market prices, the 20.45 per cent holding is worth well over EUR 1 billion — capital that would go a long way toward reducing the conglomerate's elevated debt load.

Fosun already trimmed its BCP position by 5.6 percentage points two years ago, selling down from roughly 26 per cent to 20 per cent. A further sale could see it exit entirely, or reduce to a token holding.

Fidelidade Also in Play

The BCP reassessment comes alongside renewed speculation about the future of Fidelidade, Portugal's largest insurer. Fosun had previously planned an initial public offering for Luz Saúde, Fidelidade's healthcare subsidiary, but shelved it in 2024 amid market volatility. Options for Fidelidade itself — including a partial or full sale — are reportedly also under review.

Despite the exit signals, Fosun issued a statement in late March insisting it maintained a "long-term commitment" to Portugal and would continue supporting "the strategic development and growth of its portfolio of companies." The statement highlighted Fidelidade's 15.8 per cent rise in net profit last year, to EUR 201 million.

What It Means for Portugal

A Fosun exit from BCP would be one of the most significant ownership changes in Portuguese banking in years. The identity of any buyer — whether another foreign investor, a domestic institution, or dispersed market buyers — could reshape the bank's governance and strategic direction.

Portugal's government has not commented publicly on the reports. However, the timing is sensitive: the country is navigating a period of strong but fragile economic performance, and the perception of major foreign investors retreating could affect market confidence, even if BCP's fundamentals remain robust.

Analysts expect any disposal to be gradual — likely through a combination of block trades and accelerated bookbuilds — rather than a single dramatic sale, to avoid depressing BCP's share price.

Sources: Expresso, Bloomberg, Reuters, ECO