"name":"Entertainment","item":{"@type":"Thing","@id":"https://www.thestandard.com.hk/entertainment"}},{"@type":"ListItem","position":4,"name":"World News","item":{"@type":"Thing","@id":"https://www.thestandard.com.hk/world-news"}},{"@type":"ListItem","position":5,"name":"Comment","item":{"@type":"Thing","@id":"https://www.thestandard.com.hk/comment"}}]}]17:T5a9,Bloomberg and staff reporter

Dalian Wanda has started negotiations on a proposal that would allow the conglomerate to avoid repaying about 30 billion yuan (HK$32.2 billion) to investors in its shopping mall business if the unit fails to complete its initial public offering this year, sources said.

Wanda is considering offering compensation to pre-IPO investors of Zhuhai Wanda Commercial Management as an alternative to immediate repayment, the people said, potentially easing the risk of a liquidity crunch that spooked markets earlier this year.

The Chinese conglomerate recently told investors that an IPO of the mall unit will likely take place next year, the people added.

Meanwhile, the indebted developer Shimao (0813) has agreed to sell all its stakes in a project in Zhuhai to China Life Insurance (2628) for 3.9 billion yuan to ease liquidity pressure.

In other news, Country Garden (2007) said yesterday that its investment income generated in Shaoguan of Guangdong province will be prioritized for the development of the local property sector.

Separately, Swire Properties (1972) entered into agreements yesterday to acquire a 40 percent stake in two sites in Shanghai for a total consideration of 9.7 billion yuan. The developer said it will continue its partnership with Lujiazui Group to develop two new mixed-use projects in Pudong.

Wanda in talks to avoid 30b yuan payments