Beijing: Chinese billionaire Wang Jianlin, the owner of global business empire and one of the world richest men, recently offloaded his international properties and donated the to domestic investors.
He claimed that the main cause of his U-turn was to eliminate poverty completely from his country.
Wang, was a former soldier who went into business in the late 1980s, paring back his global empire and going out of his way to emphasize his company’s domestic business.
According to some sources, he also paid government to pay debts during years of overseas expansions by sacrificing his sprawling business empire.
First it was considered as rumors but late on Tuesday January 30th, 2018 the news was confirmed when a unit of Wang’s real estate and entertainment conglomerate, Dalian Wanda Group, announced it had agreed to sell off some of its projects in Australia.
He announced and informed during press conference, “Wang has been seeking to raise funds by shedding properties around the world.
“Wanda said last week it was selling its stake in luxury London hotel project One Nine Elms for £36 million ($50 million).
The company had already walked away from Nine Elms Square, the larger development where the hotel is located, last year.”
The news has been circulating in the stock market of China about Shares of Wanda Hotel Development Company since December, and unit that sold in Australian projects and the London hotel, were suspended in Hong Kong last week ahead of the Australia announcement. The stock remains on hold pending more details on the deal.
Earlier in August, 2017 officials announced that they were limiting overseas investments by Chinese companies, specifically targeting sectors that Wanda had been eagerly pursuing real estate, hotels, entertainment and sports for last few months.
During the speech of Wanda’s annual meeting for employees, Wang highlighted that 93% of his companies asserts were in China. He said, “Over the past few years, Wanda has invested in several overseas projects. Now, we have decided to sell them so as to clear overseas debts.”
Experts said that the Chinese government was trying to address concerns that the flood of money pouring out of the country could destabilize its financial system. Officials also wanted to reduce the risk of Chinese companies making irrational or risky investments abroad.
Reporter: Syeda Faiza Bukhari
