Wanda Film rolls again

Updated 2017-06-24 10:22:21 China Daily
Two moviegoers check their mobile phones at a Wanda cinema in Zhengzhou, capital of Henan province.

Two moviegoers check their mobile phones at a Wanda cinema in Zhengzhou, capital of Henan province.

Shares recover a bit from Thursday's fall; group to sue rumormongers

Shares in Wanda Film Holding, which crashed almost 10 percent on Thursday, recovered 3.6 percent to close at 53.80 yuan (.87) on the Shenzhen Stock Exchange on Friday.

Thursday's fall, the worst sell-off since January last year that led to suspension in trading, was caused by market rumors and media reports that offshore loans may have landed Wanda Film, a part of conglomerate Dalian Wanda Group, in regulatory trouble.

Unconfirmed rumors earlier this week suggested the China Banking Regulatory Commission may have asked some banks to provide information on offshore loans extended to several mainland firms, including Dalian Wanda Group, Anbang Insurance Group, HNA Group, Fosun International and Zhejiang Luosen, for credit and risk analysis.

On Friday, Dalian Wanda denied existence of any such communication from the CBRC.

The companies concerned have been involved in mergers and acquisitions globally, raising questions about their financing channels.

Early on Friday, Industrial and Commercial Bank of China, the country's largest lender, said talk about the reported CBRC move appears to have been over-interpreted.

Such regulatory checks are routine, ICBC said. Till late Friday, there was no comment or statement from the CBRC.

An ICBC spokesman said the bank was committed to transparent and prudent credit business, and routinely collects wide-ranging data about clients with overseas business. This is done to prepare consolidated financial statements and for similar purposes.

That does not mean the bank has plans to reduce its credit business. Nor does ICBC have any plans to sell bonds of such clients.

ICBC's reference to bonds appears to have come as the 2024 notes of Wanda Properties International, a Wanda group entity, slumped on Thursday.

According to data compiled by Bloomberg, the notes fell as much as 10.7 cents on the dollar to 101 cents in morning trade on Thursday in Hong Kong, the biggest-ever drop.

Financial instruments of several units of Wanda are said to have taken a beating after the rumors emerged this week.

On its various company websites, the Wanda group said on Friday that it would sue those netizens and app users who spread rumors online that some banks had issued notices to dump Wanda's bonds. Wanda said such rumors eroded the market cap of Wanda Film by more than 6 billion yuan, caused losses to investors and hurt the company's reputation.

Wanda Film further said that Beijing Wanda Investment, a company mostly owned by billionaire Wang Jianlin, planned to go overweight on Wanda Film's shares in the coming three months, accumulating up to 1 billion yuan worth of shares, to show it is confident about the company's future.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58November 17 2018 14:39:06

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16November 17 2018 14:39:06

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18November 17 2018 14:39:06

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords