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Too early to write off Wanda Group

2014-12-29 13:49 Global Times Web Editor: Qin Dexing

Dalian Wanda Commercial Properties Co became a publicly traded company Tuesday. However, the company's stock closed below its issuing price after its first day of trading.

We should not read too much into the decline of Wanda's stock price after just one day. Many saw the company's IPO price as reflective of its true value. This means there is little chance that Wanda's stock is being inflated by speculators, especially after its recent drop. The absence of an opening-day pop is also understandable given the Hong Kong market's recent weakness.

Investors should consider Wanda Group's value over the long term. According to reports, the group is planning an A-share listing of its cinema business. The listing of its fast-growing subsidiary can shore up gaps in the finances of its parent.

Wanda Group has also been transforming its business through online expansion. In August, for example, Wanda Group joined with tech giants Tencent and Baidu to establish an e-commerce company.

Wanda Group is an ambitious enterprise that should not be dismissed after one bad day at the stock market.

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