Dalian Wanda Group — the Chinese conglomerate with its hands in everything from real estate to Hollywood films and theaters — saw shares of its hotel subsidiary crater more than 10 percent on Monday following speculation that the company’s chairman, Wang Jianlin, had been detained by Chinese authorities while leaving the country.
The company issued a statement adamantly denying Wang had been taken into custody.
“Certain individuals with ulterior motives have recently created and spread various vicious rumors regarding the Chairman of Wanda Group, Mr. Wang Jianlin,” said Wanda in a statement. “These rumors first appeared in mid-August, but were proven completely unfounded after Mr. Wang traveled to Lanzhou, Gansu province for a business trip. Unfortunately, it appears that some people have once again been peddling the same rumors.”
A Taiwanese blog initiated the story on Sunday, claiming Wang was stopped from exiting Tianjian with his family on a trip to the United Kingdom. The claims were picked up and widely circulated among China’s online tabloids, exacerbating its effects.
Despite the juggernaut’s denial, shares of its Dalian Wanda Hotel Development subsidiary fell as much as 11 percent, before ending the day down 8 percent. Wanda is one of the most powerful Chinese companies in Hollywood, owning Legendary Pictures and AMC Theaters under its banner.
With Wanda and other Chinese business giants under intense scrutiny in recent months, investors were quick to believe Wang had been detained. Shares of its film company dropped 10 percent in June after the Chinese government said it would look into its international financing arrangements.
The woes continued for Wanda earlier this month, with the Chinese government pushing a new ordinance to crack down on companies involved in “real estate, hotels, studios, entertainment, sports clubs and other overseas investment.”