Summary of How Can Wanda Group Grab the Chinese Big Health Market via Light-Asset Strategy?

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How Can Wanda Group Grab the Chinese Big Health Market via Light-Asset Strategy? summary
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What inspired the world’s largest private property owner and developer to make a shift by selling more than $9 billion worth of hard assets and taking an asset-light approach toward China’s health care industry? As of July 2017, the Chinese government required companies to reduce debt that finances foreign investments; this may have contributed to the Wanda Group’s strategic change. But other factors – an aging population, an end to the 40-year reign of the one-child policy and the loosening of government regulations – make China’s health care industry ripe for investment. In 2016, Wanda partnered with the International Hospital Group and in August 2017, it launched the Wanda Healthcare Group. In this article published on media platform and medical services company VCbeat, writer Luo Mei, who covers health topics, follows the money to trace Wanda’s moves and assess the company’s strategy. getAbstract recommends this summary to readers interested in real estate investment trusts (REITs) and the future of finance behind health care in the world’s most populous country.

In this summary, you will learn

  • How the Wanda Group is moving its focus from real estate to asset-light health care and health-related services,
  • Why the Wanda Group is partnering with IHG and local Chinese governments to modernize China’s health care industry, and
  • Which demographic and policy changes in China are inspiring the Wanda Group’s health care investments.
 

About the Author

Luo Mei covers basic health, online hospitals and medicine, and physical rehabilitation for media platform and medical services company VCbeat. 

 

Summary

Wanda Group chairman Wang Jianlin introduced his 2211 strategy in a 2015 speech, declaring that he would bring Wanda’s valuation to $200 billion, increase revenue to $100 billion and profit to $10 billion. He also hopes to reduce real estate–dependent revenue to 30% within five years. Making good on Wang’s promise, the Wanda Group has since transferred projects and liabilities – including 76 hotels – to Sunac. As Wanda Group divests its real-estate assets, it is eyeing the health care industry. By spring 2018, it had invested ¥144 billion [$22.52 billion] in this market segment.

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