Changpeng Wan
Wanda Hit with Major Equity Freezes Amid Financial Pressure
Dalian Wanda Group Co., Ltd. has been hit with three new equity freezes totaling more than RMB 9.4 billion, according to corporate data provider Tianyancha. The freezes, issued by the Beijing Financial Court, are set to last for three years. Among them, a freeze involving Shanghai Wanda Network Financial Services Co., Ltd. accounts for approximately RMB 8.562 billion of the total amount.
Bai Wenxi (柏文喜), deputy director of the China Enterprise Capital Alliance, pointed out that these freezes are a direct result of debt-related issues. Public judicial records indicate that nearly every equity freeze corresponds to an overdue debt obligation, including bank loans and trust plans.
To date, Wanda Group has 10 records as a被执行人 (subject of enforcement), with total enforcement amounts reaching RMB 4.929 billion. It also has 25 historical enforcement records totaling RMB 8.961 billion and 37 equity freezes involving multiple subsidiaries—making this recent freeze the largest to date.
Accelerated Asset Sales Continue
This year, Wanda has significantly accelerated its pace of asset disposals as it works to improve liquidity and reduce debt.
On April 17, Tongcheng Travel disclosed that it had reached an agreement to acquire 100% of the equity of Wanda Hotel Management (Hong Kong) Co., Ltd., a wholly-owned subsidiary of Wanda Hotel Development, for approximately RMB 2.49 billion.
Then, on July 22, China Ruyi announced that its indirectly wholly-owned subsidiary, Shanghai Ruyi Xingchen Enterprise Management Co., Ltd., had signed an equity transfer agreement with Shanghai Wanda Network Financial Services Co., Ltd. and Kuaiqian Financial Services (Shanghai) Co., Ltd. The deal involved the transfer of a 30% stake in Kuaiqian Financial for RMB 240 million, implying a total valuation of around RMB 800 million for the company.
According to earlier reports by National Business Daily, a private equity fund named Suzhou Kuanyu Equity Investment Fund Partnership was officially established on August 25. The fund, with total capital contributions of RMB 22.429 billion, includes 13 enterprises such as PAG, Gaobe Fengde, Tencent, Beijing Panda Commercial Management Co., Ltd., and Sunshine Life Insurance.
Notably, on May 20, China’s State Administration for Market Regulation approved—without conditions—the establishment of a joint venture by PAG, Gaobe Fengde, Tencent, Panda Commercial Management, and Sunshine Life Insurance. This joint venture is set to acquire 100% equity in 48 target companies held directly or indirectly by Dalian Wanda Commercial Management Group Co., Ltd.
After selling nearly 100 Wanda Plazas in recent years, along with stakes in Wanda Hotel Management and Wanda Film, the assets available for Wang Jianlin to monetize are becoming increasingly limited.
According to a bond trusteeship report by China International Capital Corporation Limited (中金公司) for Dalian Wanda Commercial Management Group Co., Ltd., as of June 30, 2024, the company reported revenue of RMB 26.85 billion, of which investment property leasing income accounted for RMB 14.551 billion and commercial management income contributed RMB 9.802 billion.
Wang Jianlin’s Unwavering Tourism Ambitions
Despite these financial challenges, Wang Jianlin has not given up on his tourism ambitions. In fact, he appears more determined than ever to re-enter the cultural and tourism sector with a refined strategy.
On August 20–21, Wang made a rare public appearance in Karamay, Xinjiang, where he discussed investment opportunities, tourism development, and potential collaboration with local authorities. This visit signals Wanda’s intent to explore new growth avenues beyond traditional real estate and commercial properties.
Wang described Karamay as a pearl in Xinjiang and expressed his desire to strengthen cooperation with the city, attract more premium brands, and help upgrade urban consumption. He also emphasized Wanda’s interest in utilizing its operational experience to participate in the enhancement of Urho’s cultural tourism projects, aiming to build a model demonstration for high-quality development in the tourism industry.
A Broader Vision for Wanda’s Tourism Business
Wang Jianlin’s tourism ambitions are not limited to one or two projects. Instead, he aims to build a profitable business line around cultural tourism, with plans to eventually spin off and list the tourism division.
This marks a significant shift from 2017, when, amid a liquidity crisis and a strategic pivot toward asset-light operations, Wanda sold off a large portion of its tourism assets. Back then, Wang reluctantly sold more than a dozen Wanda Cultural Tourism City projects to Sunac and nearly 80 five-star hotels to China’s R&F Group. These sales provided crucial liquidity that helped Wanda navigate its financial difficulties at the time.
Now, as Wanda makes a comeback in the tourism sector, it appears to be adopting a more open and collaborative approach.
Recent Moves in Cultural Tourism
During the 2022 FIFA World Cup in Qatar, Wanda—as China’s first top-tier FIFA partner and the tournament’s largest Chinese sponsor—focused its brand campaign on tourism, successfully promoting Wanda Cultural Tourism and Wanda Hotels & Resorts on a global scale.
Then, in February 2023, during a working meeting with senior officials in Luoyang, Wang Jianlin announced a comprehensive strategic cooperation agreement. The first major project under this partnership is the Longmen Tourism Resort, which aims to integrate the existing Longmen Grottoes scenic area, ancient streets, and forest wetland parks while developing new facilities such as Tang Dynasty-themed resorts and boutique homestays.
In April of the same year, Wanda signed agreements in Deyang, Sichuan, for a five-star hot spring resort hotel and an international cultural tourism project near Samsung Lake. It also entered a strategic cooperation framework with Zhangjiajie Tourism Group to collaborate on the Dayong Ancient City project, covering operations planning, investment promotion, and potential redesigns.
As one industry insider noted, “Unlike the old model where Wanda did everything itself, the new tourism service platform is open and collaborative. Under this model, various parties can cooperate with Wanda. The asset-light platform can provide tailored services—from operational support to renovation and repositioning—depending on the needs of each project.”
Looking Ahead: Challenges and Opportunities
Wanda’s renewed focus on tourism comes at a challenging time. The company continues to face significant debt pressure, and its ability to fund new projects may be limited in the short term. However, Wang Jianlin’s persistence suggests he sees cultural tourism as a core part of Wanda’s future identity—and a potential source of stable, long-term revenue.
Key factors that will influence Wanda’s success in this endeavor include:
– Its ability to secure financing and manage debt obligations
– The effectiveness of its asset-light, partnership-driven model
– Market conditions and consumer demand in the cultural tourism sector
– Regulatory and economic environment in China
Wang’s return to tourism is being closely watched by investors, competitors, and industry analysts. Whether he can successfully execute this vision—while navigating Wanda’s ongoing financial restructuring—remains one of the most compelling stories in Chinese business today.
Final Thoughts
Wang Jianlin’s determination to re-enter the cultural tourism market underscores his long-term belief in the sector’s potential. Despite recent equity freezes and asset sales, Wanda continues to explore new opportunities and partnerships that align with its asset-light strategy.
For investors and industry observers, the key takeaway is that Wanda is not merely surviving—it is adapting. By leveraging its brand, operational expertise, and willingness to collaborate, the company may yet carve out a leading position in China’s evolving tourism landscape.
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