A Shanghai court has issued an order to freeze shares worth 1.98 billion yuan ($278.18 million) in a subsidiary of Dalian Wanda Group, China’s largest commercial property developer.
The shares affected by the court order belong to Dalian Wanda Commercial Management Group, the property management arm of Dalian Wanda Group.
According to court notices dated Monday, the freeze on these shares will remain in effect until June 4, 2026, as reported by the company information system TianYanCha.
This development compounds the challenges faced by Dalian Wanda Group, which is currently dealing with uncertainties surrounding the timing of its unit Zhuhai Wanda’s initial public offering (IPO) in Hong Kong, financial stress regarding repayments, and a recent rating downgrade.
On Monday, S&P Global downgraded Dalian Wanda Commercial Management Group’s rating from ‘BB+’ to ‘BB,’ citing the parent company’s deteriorating liquidity.
The rating agency stated, “We see heightened risks from Dalian Wanda Group’s limited financing options due to the prolonged delay in Zhuhai Wanda’s IPO. Additionally, weaker property sales for Wanda Properties Group Co Ltd, a sister company of Wanda Commercial, have further worsened the group’s situation.”
As part of Zhuhai Wanda’s application for an IPO in Hong Kong, China’s securities regulator has requested additional information on the company’s corporate governance.
Note: The conversion rate used is $1 = 7.1177 Chinese yuan renminbi.