Two moviegoers check their mobile phones at a Wanda cinema in Zhengzhou, capital of Henan province. (Photo provided to CHINA DAILY)
Shares in Wanda Film Holding, a part of the Dalian Wanda Group conglomerate, recovered 3.6 percent to close at 53.80 yuan ($7.87) on Friday, stabilizing after a sharp fall on Thursday when it suffered its worst sell-off since January last year following market rumors and media reports over offshore loans.
Wanda Films’ Shenzhen-listed shares slumped 9.9 percent on Thursday, before trading was suspended, amid rumors that the China Banking Regulatory Commission had asked some banks to provide information on offshore loans to several acquisitive mainland firms including Dalian Wanda Group, Anbang Insurance Group, HNA Group, Fosun International and Zhejiang Luosen for credit and risk analysis.
The Industrial and Commercial Bank of China on Friday morning responded by saying the news had been over-interpreted and the checks were routine. An ICBC spokesman said they were working on customer credit-committing business so they needed to collect credit statistics of clients who had overseas business for consolidated financial statement and other uses, which did not mean they will cut down the business, neither were they selling bonds of those clients.
Wanda Properties International’s 2024 notes also slumped as much as 10.7 cents on the dollar to 101 cents in morning trade in Hong Kong on Thursday, the biggest drop on record, according to Bloomberg-compiled data. Following a similar rout at units of Wanda, shares of Fosun and its related companies also tumbled in Hong Kong. Fosun International fell 5.78 percent to close at HK$11.74 and Shanghai Fosun Pharmaceutical Group plunged 5.92 percent to HK$29.40 on Thursday. Fosun Group reacted by saying operations of their companies were normal. These shares stabilized on Friday.
Wanda Group stated on Thursday on its official websites that they would prosecute holders of Weibo accounts who released malicious rumors on the internet to the effect that some banks had issued notice to dump Wanda’s bonds.The rumors caused the market capitalization of Wanda Film to fall more than 6 billion yuan, leading to great losses for investors and impacting the company’s goodwill.
Wanda Film announced on Thursday that Beijing Wanda Investment, a company mostly owned by billionaire Wang Jianlin, planned to overweight Wanda Film’s shares in the coming three months, accumulating up to one billion yuan worth in a show of confidence in the company’s future development.
Wanda Commercial Properties, Dalian Wanda Group’s Hong Kong-listed commercial property arm, sought privatization last year mostly because of its low valuation on the Hong Kong market following its December 2014 float. Wang said in an interview that he felt sorry about the effects of its undervaluation on shareholders and investors.