QINGDAO, China (April 27): When Dalian Wanda, the Chinese conglomerate, announced in 2013 that it would build an $8 billion film studio in China to lure U.S. film producers, it did so with Hollywood flash. Stars like Nicole Kidman and John Travolta were on hand as the company’s chairman, Wang Jianlin, boldly announced that the new studio in the east coast city of Qingdao would help make China a “global cultural powerhouse”. Five years later, the Oriental Movie Metropolis is set to open its doors but the mutual courtship between ChinaRead More
BEIJING: China is to restrict foreign investments in sports clubs, real estate and entertainment and is banning investment in pornography and “unauthorised” military technology.
The new rules were announced on Friday by the government which had previously encouraged overseas spending sprees, but then warned late last year of “irrational” acquisitions amid fears that powerful conglomerates were racking up dangerous debt levels.
The announcement came days after British football club Southampton said it had entered into a partnership with Chinese businessman Gao Jisheng, with press reports saying he and his family had paid £200 million (RM1.1 billion) for an 80% stake.
“Foreign investments that do not conform to China's efforts towards peaceful development, mutually beneficial cooperation and to macroeconomic regulation are subject to restriction,” said the government, adding it wanted to “prevent risks”.
Chinese firms will no longer be able to invest in conflict zones and places that do not have diplomatic ties with China.
The rules also ban investments that could harm the country's interests and security.
High-profile Chinese deals in recent years have grabbed the limelight including Fosun's takeover of Club Med, HNA's stakes in Deutsche Bank and Hilton hotels, Anbang's purchase of New York's historic Waldorf Astoria, and Wanda's control of Hollywood studio Legendary Entertainment and 20% of the Atletico Madrid football club.
But authorities now appear to be concerned about the influence of these conglomerates, their mazes of subsidiaries and debt, and their capacity to trip up the Chinese economy.
There have been indications since July of mounting government pressure.
Wanda has announced the sale of 77 of its hotels and 13 tourism projects to Chinese real estate developers Sunac and R&F properties for a whopping US$9.3 billion (RM40 billion).
Beijing has also ordered Anbang to sell all of its overseas assets, according to Bloomberg.
The entire private sector has suffered the consequences.
The only companies still permitted to make overseas investments are firms “supporting the real economy” or working with new technologies.
As a result, Chinese non-financial sector overseas investment plummeted 46% in the first half of 2017. – AFP
SHANGHAI, July 17 — China plans to squeeze high-flying billionaire Wang Jianlin’s conglomerate Wanda by cutting off new loans and regulatory approvals for deals, reports said today, punishing it for breaching Chinese restrictions on overseas…
HONG KONG: Billionaire Wang Jianlin’s Dalian Wanda Group Co. was in focus on Thursday as the shares and bonds of its units plunged. Wanda Film Holding Co. tumbled 9.9% in Shenzhen, its biggest loss since January 2016, while Wanda Properties International Co.’s US$600mil 2024 notes plunged 10.1 cents on the dollar to 101.7 cents as of 12:06 p.m. in Hong Kong, the biggest drop on record, according to Bloomberg-compiled data. Wanda Group representatives couldn’t immediately comment. Both companies are units of Wanda Group, the property-to-entertainment conglomerate that stood out inRead More
BEIJING: A US$1 billion bid by China’s Wanda Group for the operator of the Golden Globe awards has been aborted, the US firm’s parent has said, following reports that it was a victim of a Chinese clampdown on overseas investments. The acquisitive Chinese property-to-entertainment group had announced in November it planned to buy Dick Clark […]
BEIJING/SHANGHAI (Feb 21): Chinese conglomerate Dalian Wanda’s proposed US$1 billion purchase of Hollywood’s Dick Clark Productions Inc is under pressure but is not yet over, sources told Reuters, amid high US-China tensions and tight scrutiny by Beijing on outbound deals.
An industry executive with indirect knowledge of the deal said it had hit hurdles but was not dead. A second person close to the deal said reports saying the deal was finished were off the mark, and that the parties still expected the deal to close.
(Jan 20): Viacom Inc’s Paramount Pictures will receive a US$1 billion cash investment from two Chinese film companies, Shanghai Film Group and Huahua Media, giving the US studio needed cash and stability as it attempts to grow.
As part of the agreement, Shanghai Film Group and Huahua Media will finance a combined 25% of all Paramount’s films for the next three years, with the option to extend it to a fourth year, according to a source familiar with the situation.
SHANGHAI (Jan 19): Thomas Tull, the founder and chief executive of Legendary Entertainment has stepped down, the firm said in a statement to Reuters on Thursday, a year after the Hollywood studio was bought by Chinese conglomerate Dalian Wanda for US$3.5 billion.
Dalian Wanda insider Jack Gao will for now take the helm at Legendary, the producer behind hit movies like “Jurassic World” and the Batman “Dark Knight” trilogy, putting the Chinese firm more directly in control of the U.S. studio.
SHANGHAI, Jan 18 — China’s biggest media mogul said he’d be a “happy buyer” of a top Hollywood studio if one were for sale and urged president-elect Donald Trump to resist calls for the government to scrutinise Chinese investments in the…