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China: Banks told to stop funding Dalian Wanda’s acquisitions

By  |  July 17, 2017

China’s regulators have told banks to stop providing funding for several of Dalian Wanda Group’s overseas acquisitions as Beijing looks to curb the conglomerate’s offshore buying spree, sources familiar with the matter said on Monday.

The restraints on funding for Wanda, announced at a meeting in June, focus on six overseas acquisitions, four of which have already been completed, according to an internal bank document seen by Reuters.

Banks have been told not to finance the deals or to allow Wanda to use its offshore assets as collateral for financing.

The property-to-entertainment giant will also not be allowed to inject cash from its onshore business to help the offshore subsidiaries, according to the document.

Overseas units will also not be allowed to be folded into Wanda’s locally listed firms, it added. Relevant government bodies should not provide support to help Wanda sell its overseas assets to Chinese buyers, according to the bank document.

Full Content: Reuters

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