dustytri wrote:

The Current owner is now under investigation in China. Bloomberg reports WANDA is in a China Belt tightening blender. Family detained at the Airport. See Yahoo finance page.

Here is the Bloomberg link. Did you read the article? I ask because I think your characterization is a bit off. In fact, I would argue that you mischaracterized the article.

Wanda has operations both onshore and offshore. China's banks (and pretty much everything else) are state owned. This matters because Chinese banking regulators are very sensitive to 1) capital flight; and, 2) Chinese companies borrowing money onshore and using it to purchase assets offshore. The point of the article is not that Wanda is circling the toilet (although it may be, I do not know), but that regulators are cracking down and limiting the use of onshore capital to purchase offshore assets. Wanda (along with Ang Bang, HNA Group, and Fosun) are bearing the brunt because this is the core of their business model.


The phrasing used in the article is Wanda is facing "increased scrutiny." Note that this ≠ "now under investigation." Also, note that the article specifically states that the company denied that Wang Jianlin and his family were stopped at Tianjin airport late last month. Note that a rumored but denied "stopped" ≠ "detained."

Not sure what a "China Belt tightening blender" is.

I did indeed read the article. It was the first of many renditions of the article you posted. Fact , there is an investigation and they( were or not) detained at the airport before heading to London. Seems like someone is trying to shape the news.

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Push your Passion!

I'm not a finance expert (far from it looking at the CCard bill last month) but certainly where I live it means that China are not allowing the Yen to be moved out of China or certainly making it harder. Which could possibly appear they are worried about their economy.

We have had a number of massive real estate projects stopped that were financed initially by Chinese companies in SE Asia being 'owned' by local governments and then purchased back to Chinese individuals* (or given as a gift if they purchased property within China) as an incentive, in order to move currency out of the country.

*it appears that in local press those individual are unable to get their money back.

Is that possibly China Belt tightening?

I would be interested in learning more about this investigation. What investigative body is driving it? Is it criminal? How long is it expected to last? What are potential outcomes? Why was the Wanda family detained? Has this been confirmed? Were they charged with anything?

You seem to be well informed on these matters - do you mind posting a link to your sources?

Thanks.

So why do you interpret this alleged investigation to mean there will be a new owner? Wanda might or might not sell regardless of the tightening controls on capital flight, but I've seen nothing that indicates an imminent sale and doubt that we will see one in the next 12 months.

Not sure what belt tightening means to the Chinese Gov. Interesting to see what goes on in the name of Gov. control.

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Push your Passion!

Still interested in your link regarding the investigation and confirming detainment of Wanda family if you have it. Thanks much.