China retaliates against Dalian Wanda for overseas investments

Six deals said to have violated regulations on foreign spending

New York /
Jul.July 17, 2017 09:31 AM

There are signs that the Chinese real estate spree in New York City could be over.

Chinese regulators plan to cut off funding on six investments made by Dalian Wanda Group, one of five big-ticket spenders that have come under increased scrutiny as the government clamps down on overseas investments.

The six deals were found to have violated regulatory restrictions on overseas investments, though the specific breaches were not immediately clear, Bloomberg reported. The moves by regulators include prohibiting banks from providing the company with financial support on the deals and banning Wanda from selling the assets to Chinese companies.

Wanda Group founder and billionaire Wang Jianlin, China’s largest real estate developer and second-wealthiest man, has announced more than $20 billion worth of deals since the beginning of 2016. The move by regulators represents an escalation in its crackdown on overseas spending.

“To investors, political risk is now the biggest concern when investing in Chinese companies,” said Castor Pang, head of research at the investment bank and advisory firm Core-Pacific Yamaichi HK. “Not only Wanda, every Chinese company won’t find it easy anymore to acquire assets overseas. Stabilizing the yuan is the top priority for Beijing now.”

Last month it was reported that Dalian Wanda Group had come under increased scrutiny from regulators along with Anbang Insurance Group, HNA Group, Fosun International and Rossoneri Sports Investment Management.

Four of Wanda’s six deals have already been completed, including the $9.3 billion sale of 89 hotel and tourism assets to Sunac China Holdings. [Bloomberg]Rich Bockmann


Related Articles

arrow_forward_ios
Joel Landau, chairman and founder of Allure Group. (Google Maps, Score NYC)
These were the top outer-borough loans last month
These were the top outer-borough loans last month
David Schonbraun (SL Green)
SL Green investment chief David Schonbraun steps down
SL Green investment chief David Schonbraun steps down
Aby Rosen and 522 Fifth Avenue (Getty, Google Maps)
RFR pitches Fifth Avenue office building as “build-to-suit” corporate HQ
RFR pitches Fifth Avenue office building as “build-to-suit” corporate HQ
Nearly half of new shops in 2021 will be dollar stores. (Getty)
2021 is raining dollar stores
2021 is raining dollar stores
National chains and mom-and-pop stores are seeing increasing sales per square foot and shrinking occupancy costs (Getty)
National chains paid 93% of rent in April
National chains paid 93% of rent in April
(RIPCO, iStock)
Target, Five Below, Smashburger open in new Brooklyn shopping center
Target, Five Below, Smashburger open in new Brooklyn shopping center
Close to 80 hotels with more than 13,000 rooms plan to open in 2021. (iStock)
Big year seen for hotel openings, despite few visitors
Big year seen for hotel openings, despite few visitors
Savanna’s Christopher Schlank and Nicholas Bienstock with a rendering of 141 Willoughby Street (Savanna; SLCE Architects; Fogarty Finger Architects)
Savanna nabs $264M loan for Downtown Brooklyn office project
Savanna nabs $264M loan for Downtown Brooklyn office project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...