Wanda property arm cuts 2016 sales target by almost 40%

Dalian Wanda Commercial Properties has slashed its 2016 contracted sales target by 39% to RMB100 billion (US$15.3 billion) from the previous year as it attempts to transition into property management in lower-tier mainland cities where housing oversupply is most severe, The Financial Times reported. Revenue at the property arm of Dalian Wanda Group rose 15% year on year to RMB124 billion in 2015, but the subsidiary’s vice-president Wang Zhibin said that China’s real estate sector faced “large destocking pressures” in third and fourth-tier cities, prompting the company to restrict activity in such cities to “asset-light investment properties” in which is only develops or manages projects for third-party investors.