As shares slide, China’s Dalian Wanda denies detention of chairman by authorites

Chinese conglomerate Dalian Wanda Group denied rumours of detention of its chairman Wang Jianlin by authorities and his being forbidden to leave China. But the damage had already been done as shares in its Hong Kong-listed subsidiary,  plummeted 10 per cent today.

In a swift reaction Wanda said the reports were false and malicious.

"Certain individuals with ulterior motives have recently created and spread various vicious rumors regarding the chairman of Wanda Group, Mr. Wang Jianlin," the company said in a statement.

The rumour, which had been circulating online in China for months, was published in a Taiwanese blog. It was then picked up by a number of established Chinese tabloids. According to the blog, Wang was stopped, with his family, while attempting to depart the Chinese city of Tianjian aboard a private jet bound for the UK.

According to commentators, due to the power and opacity with which the state lorded over private industry in China, investors in prominent firms were always on edge over real or perceived signs of political disfavour. Also Chinese business leaders had gone missing before. In December 2015, Chinese conglomerate Fosun, lost contact with its billionaire chairman Guo Guangcheng, which led to speculation  that he had been picked up on corruption charges.

According to commentators, Wang is one of China's richest businesspeople, with a fortune estimated by the Hurun Report, at $30 billion.

Wanda is among the most popular of Chinese companies that have expanded aggressively abroad in recent years. The group has acquired hotels, insurance companies, manufacturers of autos and robots and other assets investing billions of dollars.