Dalian Wanda to Concentrate Investments in Internet Finance
Dalian Wanda Group Co. plans to launch an initial public offering of their Internet finance arm and is also announcing huge plans for its development of the internet finance business. Wang Jianlin, the chairman of Wanda Group stated that the company is focusing on five major internet related businesses such as credit investigation, online lending, big data analysis, mobile payment and membership cards issuance and development. Wang said by 2020 the company’s internet based financial services extends to 5,000 large shopping centers, 2 million commercial tenants and around 800 million consumers. Thus generating a huge amount of data ranging from consumer behavior and cash flow of commercial tenants that provide a basis for credit approval and creates a notable value for the company.
The company is planning to issue around 500 million membership cards which combines multiple functions from loans, application to retail, catering, credit card services and entertainment. Holders of the said membership cards are able to earn rewards points an use the cards on public transportation in major cities. The company is also extending loans worth 300 billion yaun using its Internet finance arm and 200 billion of this have been earmarked for personal lending, as corporate lending will be set at 100 billion yuan. these membership cards and related network will add most value for Wanda with an estimated 40 billion customers visiting shopping malls of Wanda Group and its retail partners by 2020.
Wanda will be offering small loans online to small and medium sized commercial tenants at their shopping malls that accounts for 90 percent of the total tenants. Wang said that they are still looking to provide low cost finance to small businesses by selling wealth management products using the membership cards and this will be a major source of capital for the online lending business. Wanda is also negotiating with banks to see if they can jointly create a financing channel for small businesses at a lower costs as land for commercial properties becoming scarce in large cities, Wanda is realizing that it needs to change their old model of developing shopping malls then build homes for sale.
Before they company used to ignore the utilization of shopping centers and its return on investment, but is still focused on the idea to switch to making investments purely for the development of shopping center that does not involve huge stocks of real estate. This way the can expand to third and fourth tier cities offering higher investment return that first tier cities.