×
You will be redirected back to your article in seconds

Wanda Receives Crumb of Comfort From China’s Currency Regulator

In a spot of relief for Dalian Wanda from the storm surrounding its finances and overseas expansion, China’s currency regulator has issued a notice saying that it supports the legitimate use of domestic assets to obtain overseas loans.

The State Administration of Foreign Exchange, or SAFE, had issued a series of statements last November and December targeting irrational and “exuberant” expansion in sectors such as entertainment, which triggered a sharp slowdown in overseas acquisitions by several Chinese companies. Wanda’s deal to acquire Dick Clark Productions and Xinke’s deal to acquire Voltage Pictures both collapsed, apparently tripped up by the capital controls imposed by SAFE.

In recent weeks, it has emerged that property-to entertainment giant Wanda is being punished by regulators for breaching those controls. State banks have been ordered to cease lending to six of Wanda’s units, and not to accept those units’ assets as security.

The new notice from SAFE, dated Wednesday, indicated that foreign deals have not been completely banned, but it nevertheless contained a warning. “At the same time, SAFE will strengthen financial market supervision with other financial regulators and guide financial institutions to strengthen compliance management and risk management of internal and external loans,” the notice said. “It will crack down on false guarantees and malicious guarantees and other irregularities, and promote the healthy development of the domestic and foreign loans business.”

On Thursday, the highly acquisitive insurer Anbang said that it, too, had received some regulatory comfort. Ending days of rumors about forced asset sales, the China Insurance Regulatory Commission issued a notice saying that it has no plans to ask Anbang to dispose of its overseas acquisitions. Anbang, Fosun, Wanda and HNA were among the leading conglomerates singled out by regulators for having overstepped the mark.

Wanda responded to the regulatory intervention by agreeing to sell some $9 billion of theme parks and related developments to Sunac China, and a portfolio of hotels to another financial group. The deal will allow Wanda to ease its debt burden while continuing to operate the properties under its brand name and retain a 9% equity stake.

It has emerged that Wanda Studios Qingdao, the giant studio, film school and festival complex, is among the properties being sold to Sunac. Other sources report that Wanda may now be negotiating with Sunac to buy back the Qingdao businesses.

More Biz

  • Kevin Tsujihara

    Kevin Tsujihara's Ouster Kicks Off a Week of Major Disruption in the Media Business

    The sudden ouster of Warner Bros. Entertainment chief Kevin Tsujihara kicked off what is likely to go down as one of the most extraordinary weeks in Hollywood history, spelling enormous turmoil and transition across the media landscape. In addition to the news about Tsujihara, which comes amid a wider shake-up of leadership at AT&T’s WarnerMedia, [...]

  • Disney Fox mega deal acquisition Illustration

    Disney Completes 21st Century Fox Acquisition

    Before the East Coast airing of “Jimmy Kimmel Live!” ends tonight, Disney will formally seal the deal on its $71 billion acquisition of 21st Century Fox. “This is an extraordinary and historic moment for us — one that will create significant long-term value for our company and our shareholders,” Disney chairman-CEO Bob Iger said in [...]

  • Chinese Tech Firm Huawei Seeks Content

    Beleaguered Chinese Tech Firm Huawei Seeks Content for Expansion Into Southeast Asia

    One of the most surprising first-time attendees at FilMart is Chinese tech giant Huawei, which has come to Hong Kong to acquire the video content it needs to support its strategy of expansion into Southeast Asia. The company is currently embroiled in a PR nightmare as it defends itself against accusations that its equipment could [...]

  • Viacom HQ LA

    Viacom Goes to War With AT&T Over DirecTV Carriage Deal

    Viacom has declared war against AT&T, blasting the telco giant on several fronts as the companies wrestle over a carriage renewal deal that is vital to Viacom’s long-term financial health. As of today, Viacom has begun running crawls and promo spots on its channels warning viewers that Nickelodeon, Comedy Central, BET, MTV and other channels [...]

  • Peloton Sued for $150 Million for

    Peloton Sued for $150 Million for Using Drake, Lady Gaga Music Without License

    A group of publishers including Downtown Music Publishing, Pulse Music Publishing, ole, peermusic, Ultra Music, Big Deal Music, Reservoir, Round Hill, TRO Essex Music Group and The Royalty Network filed a lawsuit against Peloton for infringement of more than a thousand musical works, according to a statement from the National Music Publishers Association. The plaintiffs are [...]

  • Bruce Ramer Re-Appointed to Corporation for

    Bruce Ramer Re-Appointed to Corporation for Public Broadcasting Board

    Top showbiz attorney Bruce Ramer has been reappointed to the board of the Corporation for Public Broadcasting, the nonprofit org that administers federal funding for public broadcasting. Ramer, a partner at Gang, Tyre, Ramer, Brown & Passman, was elected chair of the CPB board in October. He previously served as board chair from 2010-2012. His [...]

  • Gary Knell

    Listen: National Geographic Chief Gary Knell on Disney Future, Fox's Legacy

    The marriage of National Geographic Partners and Disney, which becomes official today, is the proverbial brand match made in heaven. Disney is taking over the stewardship of Nat Geo Partners — a joint venture with the National Geographic Society — as part of its acquisition of 21st Century Fox. The transition comes at a time [...]

More From Our Brands

Access exclusive content