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China's HNA Group needs radical change of direction to prosper

Airline-to-property conglomerate expanded too fast and is paying price

| China

China's aviation-to-property conglomerate HNA Group has been on a wild ride in recent years. The group went on an aggressive overseas M&A spree, completing over 25 investments between 2015 and 2018, spending more than $50 billion and quadrupling the company's assets.

But in the past year HNA has been in the news for missing payments. In September, an airport backed by HNA failed to make good on a $200 million bond, while its Hong Kong Airlines subsidiary had seven aircraft seized in mid-December by the airport authority. The airline had almost gone bankrupt two weeks before, saved by a last-minute capital injection.

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