Chinese Regulators Block Banks From Lending To Dalian Wanda For Overseas Acquisitions

Rebecca Barbier
Julho 17, 2017

The disciplinary measures ban Wanda from obtaining further financing for these acquisitions or selling them off to local companies, and mark the second time in one month Wanda has been targetted by the government for reckless overseas investment.

China's banking regulators met with executives of the country's big state-owned banks on June 20 and advised them that Dalian Wanda's foreign acquisitions were subject to the capital restrictions imposed by the government previous year, the journal reported, citing a document from one on the participating banks.

Run by China's richest man, Wang Jianlin, Wanda is one of a handful of Chinese conglomerates that have expanded aggressively overseas over the past few years, into areas well beyond their original business - in this case, property.

The government is increasing a crackdown on capital outflows in a politically sensitive year in China.

All six investments are in the entertainment industry, according to the Journal account, including Wanda's 2012 purchase of United States theater chain AMC Entertainment Holdings and its 2016 buyout of film producer Legendary Entertainment.

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Wanda probably wishes it had been told earlier that its acquisitions were in breach of China's capital controls.

The move represents an unprecedented setback for China's second-richest man, who was among the nation's most prominent dealmakers up until previous year by gobbling up Hollywood assets, such as Kong: Skull Island producer Legendary Entertainment.

China's banking regulator did not immediately respond to requests for comment.

China's regulators have told banks to stop providing funding for several of Dalian Wanda Group's overseas acquisitions as Beijing looks to curb the conglomerate's offshore buying spree, sources familiar with the matter said on Monday.

Though cutting off funding may pressure Wanda, the group is poised to get some relief after it agreed to sell hotels, land and projects to Chinese developer Sunac China Holdings Ltd (融創中國控股) in a 63.2 billion yuan (US$9.3 billion) deal announced last week.

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