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    Chinese development giant considers $2-billion Australian exit

    Reports this week claiming that Chinese development giant, Dalian Wanda Group, will sell $2-billion worth of Australian development projects have drawn mixed responses.

    The Australian Financial Review has obtained reports that discussions are underway in Hong Kong over the potential sale of two Wanda-owned Australian projects: the $1-billion Jewel Gold Coast apartment project, and the $90-million Wanda One hotel tower in Sydney. 

    According to The Australian, however, this isn’t the case. In a statement released in response to the sale rumours, Wanda One Sydney’s managing director, John Wei, said: “News reports that Wanda is fielding offers to sell the two real-estate projects in Australia are completely false. Wanda has never had any negotiations with any party. The construction of the two projects is moving forward smoothly, and apartment sales remain strong.”

    The same stance has also been reported by Reuters and South China Morning Post.

    Either way, The Australian has said that both local and international groups are currently preparing to express their interest, particularly with regards to the Sydney project.

    These reports follow concerns that Wanda – along with similar companies – has overpaid for foreign assets. If true, this could cause a systemic risk to China’s banking system.

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