When Wang Jianlin took Wanda Commercial Properties public in Hong Kong in 2014, the $3.7bn flotation marked something of a coming out for the tycoon. Known on the mainland for his Wanda Plaza developments, he was starting to gain an international reputation as a dealmaker, buying cinemas and eyeing US film studios.
Since then Mr Wang’s deals and his property developments have established him as China’s richest man. However, investor appreciation for Wanda Commercial, the core of his empire, has not matched this success. In fact, just 15 months after going public, Mr Wang said he was considering taking the business private again.
It is widely thought that, like a host of US-listed Chinese companies currently being taken private, Wanda will eventually seek to relist in Shanghai or Shenzhen, where valuations are usually higher. In the meantime, though, the proposed move highlights another trend: growing Chinese dissatisfaction with the equity market options available to their companies.