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Chinese Investors Are Pulling Back From French Luxury Brands

By Aymeric Mantoux04 mars 2025

The enduring value of heritage and the capitalization on craftsmanship continue to drive Chinese groups to acquire French luxury brands. However, concerns over management practices and stricter capital controls by the Chinese government are curbing their enthusiasm. An in-depth investigation.

Since spring 2024, the Beijing government has further tightened capital controls, and funds are blocked for Chinese wishing to invest abroad. Above, a Sonia Rykiel show at Paris Fashion Week (Shutterstock)

After a peak in acquisitions between 2010 and 2018, we have observed a slowdown due to stricter controls on investments outside China

Bruno Grangier, Partner at Leaf Legal

Chinese investments abroad have reached unprecedented levels—over €130 billion to date. France remains a prime destination, ranking as the second most attractive European country for Chinese investors, with over €15 billion injected into its economy in less than two decades, according to data from the American consultancy Rhodium Group. “For the past decade, the rise of an affluent middle class in China has fueled an exponential demand for luxury products, particularly French ones,” explains Bruno Grangier, Partner at Leaf Legal, a law firm based in Paris and Shanghai that advises key industry players. “These brands offer unmatched prestige and craftsmanship, particularly in high-end artisanal work, which naturally attracts Chinese investors. Their preferred targets include vineyards, high-end real estate—especially hotels—and fashion brands.”

Luxury: A Resilient Sector that Attracts Chinese Investors

On December 24, 2024, Fortune Legend Limited (FLL), a holding company controlled by the Hong Kong fund Tor Investment, launched a takeover bid for Baccarat, which had accumulated several tens of millions of euros in debt. Above, the *New Antique Solar* vase by Baccarat (Baccarat)

In recent years, numerous Chinese groups have taken over some of France’s most prestigious luxury brands, including ST Dupont, Lanvin, Club Med (Fosun), Clergerie, Rykiel, Carven, and SMCP (Sandro, Maje, Kooples), as well as publishing house Editions Jalou. More recently, Fortune Fountain Capital acquired Baccarat, while HNA, the holding company of Hainan Airlines, purchased several luxury hotels in French Polynesia. “Acquiring iconic brands allows Chinese investors to capitalize on this trend while benefiting from artisanal expertise and a historical legacy that is difficult to replicate locally,” adds Bruno Grangier. “It is also a way for them to diversify their international assets in a sector that remains relatively resilient to economic downturns. Some investors have sought to acquire brands in France to expand them in the Chinese market. Max Mara, for instance, has significantly strengthened its presence in China thanks to Chinese investments.” While this interest is not new, the strategies behind these acquisitions have evolved over time.

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Mixed Fortunes for Acquisitions

Victor Fung (left) and William Fung (right) and their Hong Kong company, Fung Brands, acquired Sonia Rykiel in 2012, as well as luxury shoemaker Clergerie, Belgian leather goods maker Delvaux and Trinity.

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