We plan to invest like him in insurance

The Chinese conglomerate Fosun has acquired last month a little more than 7 of the capital of the Mediterranean Club, with the possibility to climb up to 10, in a strategic agreement to accompany the development of the operator of holiday in China villages. In an interview with the "Echos", its President and co-founder, Guo Guangchang, explains why the Club Med is well positioned on a Chinese holiday, emerging market and potential. On the other hand, does not hide the desire of Fosun to invest in France, citing luxury, real estate and wine as centres of interest.

You just take a little more than 7 of the capital of the Mediterranean Club. Why

When we invest, we take at the outset two criteria into consideration: it must be that the sector is considered good, and that it has a dynamic of growth. But tourism is dedicated to a bright future in China. This goes together with the consumption boom. Moreover, the Chinese travel behaviour change: before, they changed their site every day for a week. Today, they like to stay in the same place and enjoy a real holiday. Chinese companies give ten to 15 days of vacation per year to their employees, but this is changing quickly. We also believe that this is the time to invest in the sector of tourism in China because the costs are still low. In addition, we are in total agreement with the strategy implementation by Club Méditerranée, including willingness to get in range and reduce costs, even if there were difficulties in recent years. We will help it to attract more Chinese customers, but also to build more villages. We will not restrict ourselves to 5 number villages covered by the Mediterranean Club by 2015, Editor's note. We can look to go beyond term. Fosun has real estate activity, and we want to participate in the financing of the next villages. In addition, I have many friends who want to invest in real estate. We are quite open to other investors, and completely agree with the strategy real estate focus of the Club Med on the single management of its villages and their property. We will also cooperate with public relations and distribution. We have created a Forbes club, which brings together highly influential people. We know a very large number of corporate boards. That we will discover we mutually, we will find other opportunities for partnership.

When have you heard of Club Med for the first time

In March of this year! I inquired to my friends who had already been in the Club Med. There is already a small network of Chinese who are familiar with, and the satisfaction rate is very high. With our investment, the reputation of the company in China will be increased tenfold. We were looking for a long time to invest in France. We seek something about consumption.

Why taking only 7

It would have liked a little more. We have obtained 10. We will probably have by the end of the year. Moreover, we do not act as an investment fund. We can stay 10 years, 20 years or life. Henri Giscard d'Estaing now has a true friend in China, and China is no longer the same for him.

Is economic hotel in China an area that interests you

We watched. But there are already Chinese operators, and the entry threshold is very low. Club Mediterranee is the only company in the travel sector appeared us to be interesting. There is no competitor in China. Club Med, is a way of life and it is also a global network.

And air transport

It is a sector that I do not like much. When the economy goes well, you earn little money, when it goes wrong, you lose many!

You said wish to invest in France. Why

We felt very early international. For my part, I have always loved the France for its brands, its art of living, which are the best in the world. We sought in the areas of luxury, real estate, wine.

You are looking for yet

Yes...

Fosun is today a conglomerate. This is a transitional form. Do you think one day refocus you on certain trades

We have three models: General Electric, Warren Buffett, and Li Ka-shing the businessman of Hong Kong at the head of the conglomerate Hutchison Whampoa, Editor's note. I think that Fosun will guide more towards the Warren Buffett through Berkshire Hathaway model. We plan to invest, like him, in insurance. Fosun is a diverse group, but we have specialties: discover values of growth; support branch in the development of its business; manage our capital.

What is your analysis on the evolution of wages in China and salary conflict

There are claims is perfectly legitimate. The growth of the country has no common measure with the evolution of wages. These are extremely low indeed. As such, graduate employees have levels of remuneration comparable to those that can be found in Hong Kong, even in the United States. This tension on wages could pose problems for companies in labour-intensive, but I think that it will be profitable for the restructuring of the Chinese industry.

What is your point of view on inflation of the yuan

I support an increase in reasoned. A sudden increase would be damaging to China. I am in no position to give a precise figure. In any case, do not like the Japan.