Xi Jinping’s favourite baozi shop gets a financial lifeline from Fosun, eyes a stock market listing

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Jane Li

Published: 8:00am, 10 Aug 2018Updated: 1:57pm, 10 Aug 2018

A Chinese state-owned steamed bun store made famous after receiving Chinese President Xi Jinping’s surprise visit in 2013, announced that it has raised investment from a key subsidiary of Chinese conglomerate Fosun International, the Chinese owner of Club Med, and two other investment parties, paving the way for a listing.

The Qingfeng Steamed Dumpling Store restaurant chain is a unit of Beijing Huatian Restaurants Group, which is in turn owned by the Beijing government. The venture received 35 million yuan (US$5.13 million) from Shanghai Fosun High Technology Group, a wholly owned subsidiary under Hong Kong-listed Fosun International, whose business spans property, wealth management and tourism.

In 2014, Fosun invested US$35 million in Malaysian lifestyle cafe chain Secret Recipe, its first major investment in the food and beverage segment.

The Qingfeng restaurant chain also received 50 million yuan from state-owned investor Beijing Financial Street Capital Management on Wednesday, according to The Beijing News. The company said it was “graduallying pushing through” with a stock market listing, without disclosing a time frame.

Proceeds from the capital raising will be used for upgrading and expanding the company’s current network and supply chain, the company said.

Qingfeng announced in January it planned to bring in outside investors for a 7 per cent stake for around 33.5 million yuan, according to a statement published on Beijing Equity Exchange. After receiving the investment, Huatian will remain the biggest shareholder with a 81.6 per cent stake, while Fosun and the state-owned asset management firm will hold a 7 per cent and 10 per cent stake, respectively.