Chinese billionaire 'fallen horse': The real estate tycoon's long slide - photo 1

Chinese billionaire ‘fallen horse’: The real estate tycoon’s long slide | World

Among these, billionaire Wang Jianlin, who has held the richest position for many years in China, but his inheritance has been “on a steep decline” since the government strongly controlled overseas sales. .
AMC Entertainment, the world’s largest cinema chain by the Dalian Wanda Group (Dai Lien Van Dat) of billionaire Vuong Kien Lam, by the end of December2020, filed an application to the Securities and Exchange Commission. (SEC) to sell 50 million shares in an attempt to overcome difficulties caused by the Covid-19 pandemic, according to the magazine Deadline.
Previously, AMC registered to sell 200 million shares and in October 2020 warned that there could be no cash left until the end of 2020 or early 2021. Over the past 3 years, Dalian Wanda had to sell a series of real estate and other assets after a period of massive acquisitions. At the same time, Mr. Wang Jianlin from being the richest man in Asia, is now pushed out of the top 20 richest people in China.

Strong relationships

Mr. Vuong was born as a soldier and also spent 17 years in the army, up to the command of regiment. After leaving the army in the late 1980s, Mr. Wang worked in the Dalian City government. A turning point in his career came to him when he “transformed” a state-owned construction company on the momentum of failure to profit. In 1992, the company restructured and in the following 10 years it was privatized, in which Mr. Vuong was the main shareholder.

Later, Dalian Wanda became the No. 1 real estate empire in China with hundreds of commercial centers, 5-star hotels, movie theaters, office buildings … To be able to develop a real estate business. In China, Mr. Wang knew how to create benefits for the local government to get land use rights, according to The New York Times.

Experts say that the local government wants to cooperate with Wanda because of the tax revenue it brings from the projects they build. Besides, Wanda’s project completion progress is often very fast, for example a Wanda Plaza shopping mall can be completed in 18 months, and it can be considered as an achievement for officials to expect. into a promotion. As a result, he obtained plots of good terrain at a much cheaper price than his competitors.

On the other hand, the rise of Dalian Wanda also has the mark of support from connections with certain relatives of Beijing’s top leading officials, according to the investigation. The New York Times.

Mr. Wang did not comment on this issue, but once explained that the Chinese economy is led by the government and the real estate industry depends on approval from the state, so to say that it can be successful in this profession. Without government support it is impossible. However, Mr. Vuong also emphasized that his company does not give bribes in order to develop.

Mr. Wang Jianlin said that it is impossible to develop in the real estate industry in China without the government’s support.

Wanda’s ups and downs

On the other hand, the development of Dalian Wanda is not only through the business and development of real estate but also through the diversification of investment in the field of culture and entertainment. This strategy is in line with the Chinese leadership’s policy to expand cultural influences at home and abroad, in the context that younger generations increasingly tend to look to Western values.
In 2012, Wanda spent $ 2.5 billion to buy AMC and took 80% of the company’s shares after the IPO in 2013 worth $ 1.7 billion. Wanda was then one of the private Chinese companies at the forefront of overseas acquisitions, with deals to buy film studios, movie theater chains, sports clubs, yacht manufacturers. , real estate in America, Europe and many other places. In 2016, the magazine Forbes ranked Vuong as the richest person in Asia with a net worth of $ 28.7 billion. In March 2017, he ranked 18th in the list of world billionaires with $ 31.3 billion.

In August 2020, Wanda sold 90% stake in skyscraper project Vista Tower in Chicago (USA) for $ 270 million to reduce the corporation’s debt. As of December 31, 2020, Mr. Wang’s total net worth is only about 14.2 billion USD and he is ranked 30th on the list of richest people in China, according to Forbes.


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