×
You will be redirected back to your article in seconds

More Turmoil for China’s Wanda as Rumors Fly

China’s Dalian Wanda issued a stern denial Monday following rumors that company chairman Wang Jianlin had been detained by authorities as he attempted to fly abroad. The unsubstantiated reports caused stocks in Wanda’s hotel group to swoon.

“Rumors have been spread by people with ulterior motives,” the company said in a statement. “This is not the first time. Similar ones circulated in mid-August when chairman Wang went to Lanzhou.”

The latest stories, which first emerged on a financial blog, asserted that Wang was detained by authorities when he and his family were en route to the airport in Tianjin, near Beijing, for a planned flight to Britain. The reports said Wang was prevented from leaving China and released after a few hours.

Wanda sent Variety a written statement denying the rumor. But a spokesman declined to add to the statement, and did not say whether Wang is currently in China or not. The statement threatens legal action against media engaged in spreading fabrications about the company.

Dalian Wanda, Wang’s property-to-entertainment behemoth, is not listed. But the Hong Kong-traded shares of its hospitality group, Wanda Hotel Developments, were down 8% at HK$1.59, by the stock market close at 4:30 p.m. Monday, local time. The hotel subsidiary is the only Wanda company actively trading at the moment, as Wanda Film Holdings shares have been suspended since July and Wanda Commercial Properties shares were de-listed earlier this year on Hong Kong and have not yet been re-listed in mainland China.

Despite Monday’s fall Wanda Hotel shares remain up by 72% on the month, having soared from HK$0.92 on Aug. 1. Investors looked favorably on the unit’s acquisition of a hotel management business that it bought from Wang, in yet another piece of Wanda group restructuring.

 

In the feverish atmosphere currently surrounding Wanda and a handful of other high-profile Chinese companies involved in overseas acquisitions, which have found themselves slapped down by the government, it is difficult to tell fact from fiction amid a welter of rumors.

In July, Wanda denied reports that state-owned investment firms had been ordered to sell its stock and corporate debt. A few days later, however, a note emerged online from a meeting between regulators and bankers showing that state-owned banks had halted lending to Wanda and its subsidiaries.

Another rumor currently making the rounds says that the heads of all major listed companies and state-owned enterprises have been effectively grounded and required to remain in China until after the upcoming Communist Party Congress. The congress is expected to take place this autumn, between August and November, but no date has been formally announced.

More Biz

  • Alan Horn Bill Tanner

    Alan Horn to Keynote Variety Business Managers Elite Breakfast, Bill Tanner to Be Honored

    Bill Tanner will be recognized with Variety’s 2019 Business Managers Elite Award at the annual Business Managers Elite Breakfast presented by City National Bank, which takes place in Beverly Hills on Nov. 13. Co-chairman and chief creative officer of The Walt Disney Studios Alan Horn will be the keynote speaker in conversation with Variety editor-in-chief, [...]

  • Smoke haze covers the Sydney Harbour

    Australia's Seven West to Merge With Affiliate Prime Media

    Australia’s Seven West Media has agreed a deal to acquire regional broadcast group Prime Media. The move is a further step in the consolidation of Australia’s traditional media industry. The two companies announced on Friday that Seven will make the acquisition entirely through the issue of new shares to the owners of Prime. Both companies [...]

  • Ron Meyer

    Ron Meyer Files $10 Million Suit Over Forged Rothko

    NBCUniversal Vice Chairman Ron Meyer has filed a $10 million suit against two art dealers, claiming they sold him a forged Mark Rothko painting in 2001. Meyer accuses Susan Seidel and Jaime Frankfort of duping him into buying the work. According to the suit, he was told that it would be included in an official [...]

  • Former movie producer Harvey Weinstein (L)

    Harvey Weinstein Seeks to Call Expert on 'Recovered' Memories at Rape Trial

    Harvey Weinstein’s attorneys are seeking to call an expert on “recovered memories” at his trial on rape and sexual assault charges. The defense has filed a motion asking to call Deborah Davis, a psychologist and professor at the University of Nevada at Reno. Davis is a frequent defense witness. She co-authored an article in 2006 [...]

  • Tekashi 6ix9ine Docuseries Coming From Showtime

    Tekashi 6ix9ine Docuseries Coming From Showtime and Rolling Stone

    Showtime Documentary Films today announced a new limited docuseries profiling controversial rapper Tekashi 6ix9ine. Titled “SuperVillain” and inspired by the Rolling Stone feature written by Stephen Witt, the three-part series will trace how a New York City deli clerk named Daniel Hernandez became superstar rapper Tekashi 6ix9ine — who racked up 2.6 billion streams and [...]

  • Fader Label Logo

    Fader Label Signs Two New Acts, Boosts Staff

    The Fader Label, home to Clairo, Matt and Kim and others, announced two new signings today along with three new hires on its staff. Charlie Burg and Zachary Knowles have joined the label’s talent roster, while Carson Oberg has come aboard as general manager, Yasmine Panah as project manager and Josh Hymowitz as label coordinator. They [...]

More From Our Brands

Access exclusive content