- Chinese commercial real estate developer Dalian Wanda Commercial Properties Co. (3699.HK) has confirmed that it will close 40 shopping malls throughout China, including in Jinan, Tangshan, and Shenyang, reports nbd.com.
- The company will also close 80 KTVs at the same time.
Why It Matters:
- Dalian Wanda Commercial Properties is the largest commercial real estate developer in China, and it owns numerous shopping malls, hotels, office buildings and KTVs. However, the cooling Chinese economy and a decreasing rental income has placed the company under great pressure.
- The company noted that one of the reasons for closing the shopping malls is because more consumers are now choosing to shop online.
- Dalian Wanda Chairman Wang Jianlin emphasized that the company must shift more of its revenue sources from traditional real estate development to more consumption-related businesses such as entertainment.