Hello All,
http://www.latimes.com/business/la-fi-wanda-20170719-story.html
Excerpt:
“Dalian Wanda Group’s announcement last week that it would sell $9.3 billion in tourism assets to a rival Chinese property developer came as a shock, illustrating the sudden reversal of a company thought to have deep pockets to match its lofty ambitions. Its move Wednesday to amend the agreement only adds to suspicion about the company’s standing.”
Hello All,
https://www.nytimes.com/2017/08/01/business/dalian-wanda-group-china-debt.html?_r=0
Excerpt:
"Debt-Ridden Chinese Giant Now a Shadow of Its Former Size
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Fascinating. That article really puts WTC’s place in the constellation of assets in perspective. If they are selling so many local properties, why keep this unrelated IM property? At the end of the day, I can’t see it changing much for triathletes, although it would be nice to repatriate some K slots.
Makes one wonder about all the other US assets held by Chinese interests? How healthy is it all?
Makes one wonder about all the other US assets held by Chinese interests? How healthy is it all?
Chinese nationals/corporations have been huge net buyers of U.S. real estate for the last ~10 years and that seems to have dried up now. An acquaintance of mine is the listing agent for a new 35 story condo building in Chicago’s Gold Coast. It’s a spec being built by a wealthy Chinese individual. ~40-50% of the pre-construction buyers were Chinese and about half of them now have their units up for sale even though the building isn’t even finished yet (it’s very close to being finished though).
Chanos has been warning of a looming liquidity crunch in China for a while now and has also warned of the potential spillover effects for U.S. assets.
IMO, the market is in denial mode right now: assets have been put on the market but at prices where there are no buyers.
Sounds like the Wanda group watched “Field of Dreams” one too many times…
Chanos has been talking about liquidity crunch in China for last 10 years; always talking about ghost cities. What Chanos seem to miss is the extermely high level of savings in China and low external level of debt.
whats happening with Wanda has to do more about politics than economics; China is upset that conglomerates used Chinese capital to buy foreign assets which are not productive for Chinese economy (they are completely fine with Chemchina buying Syngenta for example). Ie Wanda pledged chinese assets to chinese banks to get loans to go on a shopping spree offshore. And now they are penalising those companies. Companies in question are Fosun, Wanda, HNA and Angbang. So yes a lot of their foreign holdings will be for sale; including the WTC.