Wang Jianlin, once the richest man in Asia, is suspected of being purged by the Chinese Communist Party.
Wang Jianlin, once the richest man in Asia, has been purged by the Chinese Communist Party and is no longer in the limelight. U.S. media reported that Wang’s business empire is in deep debt, with total debts reaching 362 billion yuan.
According to Bloomberg, Wang Jianlin’s fortune has continued to shrink, losing as much as $32 billion in six years, and Wanda Group has lost even more of its former glory and is now heavily in debt, with total liabilities reaching 362 billion yuan.
Wang expects to cut the group’s debt and revive the entertainment and property empire, but investors don’t trust the bonds issued by Wanda, the report said.
Wanda’s onshore bond maturities will peak this year, with some of its dollar bonds leading the plunge earlier in March amid a general decline in Asian credit markets. Wanda believes the drop was triggered by concerns about their upcoming repayment.
Investors are eager to see how Wang will get out of his group’s debt crisis and avoid following in the footsteps of HNA, Evergrande and Anbang Group, the report said.
Analyst Dan Wang said Wanda’s liquidity is a key consideration for investors. Wanda representatives have not yet responded to requests for comment on the debt risk.
Wang became China’s richest man in 2013, and in 2015 and 2016 Wang ascended to the top spot for two consecutive years. And Wang has also taken a stake in Spanish soccer club Atletico Madrid and threatened to compete with disney.
Wang Jianlin has also publicly said, “Wanda entered the industry, regardless of state-owned enterprises, central enterprises, have no chance to be the boss.” Wang Jianlin’s fortunes reversed in 2017, when Dalian Wanda Group accelerated the sale of its assets, earning more than 130 billion yuan through the sale of assets.
In mid-May 2020, the mainland media reported that Wanda’s AMC cinema was going bankrupt because it could not pay its rent, and that Wang Jianlin had gone from being the richest man to the most “negative”, with a debt gap of 400 billion yuan, and had disappeared for days.
The latest news is that Wanda has given up its controlling stake in AMC, the largest movie theater operator in the US, and now holds less than 10% of AMC.
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