Wanda Film’s stocks firm on Friday after sharp slide

Shares of Wanda Film Holding Co, the Shenzhen-listed film production arm of real estate giant Dalian Wanda Group Co, firmed on Friday after sliding almost to the daily trading limit on Thursday, as the company released a statement clarifying that its business operations are currently normal.

On Friday, Wanda Film’s shares surged by 3.6 percent to 53.8 yuan ($7.8) per share. The company’s shares dropped by 9.91 percent on Thursday, shrinking its market value by about 6.6 billion yuan. Trading of the company’s stock was suspended at around 1 pm on Thursday, and Wanda-issued bonds also dropped 2 percent.

The dip resulted from market rumors that a number of domestic banks, including the China Construction Bank, had issued a notice to sell off Wanda bonds.

Dalian Wanda issued a statement on Thursday and Wanda Film did so on Friday, saying that the bank bond selloff was totally fabricated, and that their business operations remain normal.

Dalian Wanda said on its official WeChat account on Friday that it plans to sue the media outlets that started the rumors when it finishes collecting evidence.

Wanda Film also announced on Friday morning that shareholder Beijing Wanda Investment Co will increase its holdings of Wanda Film shares to no more than 1 billion yuan in the three months starting Friday, while also stressing that the increased stock holdings would not be sold for at least one year after the shares are bought.

The China Banking Regulatory Commission (CSRC) in June requested some domestic banks provide it with information on overseas loans to domestic companies including Wanda, in order to rein in possible risks, according to a Bloomberg report on Thursday.

Another company being investigated by the CSRC, the Shanghai Fosun Pharmaceutical Group Co, saw its share price surge by 3.35 percent on Friday after dropping by 8.02 percent the previous day.

Fosun issued a statement on Thursday stressing that it is operating as usual.