The Chinese firm is in talks to buy Italian lingerie company La Perla. This is probably bargain-hunting mixed with a plan to expand in China. Underwear is a tricky industry in the People’s Republic, even at the luxury end. Making an attractive return will be tough.
The state has been stealthily reducing its role in industry by allowing private players to gain market share. There's appetite for a more aggressive approach. If national carrier Air India can be sold, look for banks, energy and other assets to follow if Modi wins a second term. This is a Breakingviews prediction for 2018. To see more of our predictions, click here.