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Bonds
BusinessBanking & Finance

Dalian Wanda Group firm’s bond prices slide on loan extension concerns, subsidiary’s IPO deadline

  • Dalian Wanda Commercial Management’s offshore bonds fell this week as investors are concerned about possible extension to onshore trust loans
  • Zhuhai Wanda Commercial Management, an entity controlled by Wanda Commercial, faces a month-end deadline to launch its IPO to raise much-needed cash

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Dalian Wanda was placed on a watch list by regulators in 2017 along with a few other privately controlled Chinese conglomerates. Photo: Imaginechina via AFP
Iris Ouyang
The offshore bonds of Dalian Wanda Commercial Management, the commercial property management arm of Chinese conglomerate Dalian Wanda Group, have taken a hit this week despite the company denying recent rumours of possible extensions to onshore trust loans.
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The slide in bond prices also comes as a six-month deadline by the Hong Kong stock exchange for the initial public offering of an entity controlled by Dalian Wanda Commercial Management is due to expire by the end of this month.

The notes of Wanda Properties International, a subsidiary of Dalian Wanda Commercial Management, due January 2024, were traded at around 81.25 cents to the dollar on Wednesday, compared with 88.375 cents on Friday, according to Refinitiv data.

Its affiliate Wanda Properties Global’s 11 per cent bond due February 2026 was offered at 75.5 cents to the dollar, compared with 81.625 cents on Friday.

Dalian Wanda Group, controlled by Wang Jianlin, has accumulated a large amount of debt. Photo: AFP
Dalian Wanda Group, controlled by Wang Jianlin, has accumulated a large amount of debt. Photo: AFP

The drops came as rumours swirled around in bond traders’ chat rooms that an unspecified subsidiary of Dalian Wanda Commercial Management intends to extend all of its onshore trust loans. Trust loans serve as an important financing channel for developers, usually as a debt instrument to raise funds from investors to finance property companies’ projects.

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The rumours have triggered concerns about the financial health of Dalian Wanda, controlled by its billionaire founder Wang Jianlin, and its affiliates.

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