Business
22:15, 18-Jul-2017
Sunac shares nosedive as Wanda deal comes under scrutiny
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Share prices of Chinese property developer Sunac have nosedived as investors fear that the company is under official scrutiny. At the same time, rating agencies have downgraded Sunac over its recent deal with commercial real estate giant Wanda.
Sunac agreed to buy hotels and theme parks from Wanda in a deal worth 9.3 billion US dollars, in what is China's biggest ever property transaction.
Sunac and Wanda will officially sign the deal on Wednesday, with more details concerning the acquisition expected to be revealed, including the terms of the entrusted loans. Meanwhile, some Chinese banks are reportedly reviewing Sunac's credit risk.
Sunac chairman Sun Hongbin said it's normal for banks to review a company's credit profile, and stressed that there is no problem with his company's cash flow.
Related stories: Chinese developer Sunac to buy US$9.3 bn of Wanda assets