China’s largest commercial property developer, Dalian Wanda Group, had 1.98 billion yuan ($278.18 million) in shares frozen by a Shanghai court.
Dalian Wanda Commercial Management Group, a property management subsidiary, issued the frozen shares.
According to the firm information system TianYanCha, two Monday court notices ordered the shares worth 1.98 billion yuan frozen until June 4, 2026.
Court orders worsen Dalian Wanda Group’s situation. It faces repayment difficulty, a credit downgrade, and uncertainties surrounding Zhuhai Wanda’s Hong Kong IPO.
On Monday, S&P Global downgraded Dalian Wanda Commercial Management Group to ‘BB’ from ‘BB+’ due to parent liquidity issues.
Dalian Wanda Group’s limiting finance channels due to Zhuhai Wanda’s IPO delay increased concerns. The rating agency said Wanda Properties Group Co Ltd, a sister company of Wanda Commercial, had weaker property sales than projected, worsening the group’s condition.
On Friday, Zhuhai Wanda’s proposal for a Hong Kong IPO required extra corporate governance information from China’s securities regulator.
Comment Template