In the news: Luye Medical buys Aus private hospitals, Tencent's mobile games go global and Danone sells its China baby formula brand

Luye Medical buys Australian private hospital chain

Chinese pharma group Luye Medical will buy private hospital operator Healthe Care Australia from private equity firm Archer Capital for $688 million. Healthe Care runs 17 hospitals with more than 1,800 beds across Australia and is the country's third-largest private hospital operator. IMS Health predicts healthcare spending in China will grow by between 14% and 17% a year. The deal follows one in September where China's Biostime International purchased stakes in Australian vitamin company Swisse Wellness. As China struggles to reform its healthcare system, it benefits from deals like these, which bring foreign expertise into the country and increase domestic competitiveness in a market being eyed by global investors. China also recently encouraged investment in private hospitals, but many risks remain amid vague guidelines and differences in local implementation. The extent that foreign investment will play a role in practice remains unclear as well.