China

Dalian Wanda to Close 40 Shopping Malls in China

Summary:

  • 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.