China property giant Dalian Wanda makes 95 billion yuan bet on Yunnan tourism
As part of plan to spread empire across country and enter the booming industry, property giant will build 19 malls and resort in the province
China property conglomerate Dalian Wanda Group will invest 95 billion yuan in 19 shopping malls and a tourism resort in the next four years in Yunnan province, said Wang Jianlin, the company's chairman and Asia's richest man.
The investment is part of Wang's plan to spread his empire across the country and enter the booming tourism industry.
With the Yunnan commitment, the company has signed deals totalling 775 billion yuan this year with provinces, including Sichuan, Henan, Liaoning, Guangxi and Guizhou, to penetrate the country's third and fourth-tier cities where, it says, customer loyalty is higher.
However, some analysts are increasingly worried about the property glut in small cities, putting a question mark on Wanda's financial soundness and profitability.
Xishuangbanna, in Yunnan, is rich in cultural and tourism resources, and is an example of the untapped nooks of China that Wanda and other developers want to develop into resort cities like Sanya, on Hainan Island.
"We will revolutionise Yunnan's tourism industry," Wang said at the ceremony on the weekend to mark the signing of project deals with Yunnan.
