Wanda Group and its chairman, Wang Jianlin, have once again become the center of attention due to a recent lawsuit. China’s real estate giant, Vanke Group, has filed a lawsuit against Wanda and Wang Jianlin over a longstanding cooperation dispute, reigniting interest in the case. The topic has become a hot search trend.
According to QCC information, a subsidiary of Vanke, Hainan Wan Jun Management Service Co., Ltd., filed a lawsuit against Wang Jianlin, Dalian Wanda Group Co., Ltd., and Wanda Real Estate Group Co., Ltd., over a contract dispute. The case is scheduled to be heard at the Shanghai Second Intermediate People’s Court on November 3, 2025.
Reported by Jiemian News, the origins of this case can be traced back to a cooperation project called “Changchun International Studios” in 2019, where Wanda Group led the development of the project and brought in Vanke for cooperation. However, Vanke later withdrew from the project, leading to disagreements over the repayment of investment funds and sparking a dispute between the two parties.
According to QCC information, the equity structure of Hainan Wan Jun shows that Shenzhen Yingda Investment Fund Management Co., Ltd. and Zhuhai Hengqin Wan Jun Investment Group Co., Ltd. hold 70% and 30% of the shares, respectively, both being under the Vanke Group.
The entanglement between Vanke and Wanda dates back to 2015 when they signed a strategic cooperation agreement in Beijing on May 14, 2015. The collaboration aimed to deepen cooperation on projects domestically and internationally through joint land acquisition and development, with Wanda focusing on commercial aspects and Vanke on residential components.
Prior to that, Wanda had already released posters hinting at the cooperation: “20,000, check. May 14th, stay tuned.” The specifics of the collaboration and partners were not disclosed, leading to industry speculation pointing towards Vanke and Wanda. At that time, Wanda was the world’s largest real estate developer and operator, while Vanke was the largest residential developer globally. The union of the two industry leaders caused a stir at the time.
Regarding their cooperation, Wang Jianlin stated, “This is a coincidental strategic transformation for both parties.” Former Vanke Group President Yu Liang described their collaboration as “a perfect match, love at first sight.”
The substantial cooperation between Vanke and Wanda only materialized four years later. In 2019, Wanda signed a strategic cooperation agreement with the Changchun municipal government, planning to invest 20 billion RMB in creating the “Changchun International Studios” project. The project aimed to build a world-class film and tourism complex, including film studios, entertainment facilities, and high-end residential properties.
By June 2021, Vanke decided to prematurely terminate the cooperation for various reasons. Wanda had already returned 5.24 billion RMB to Vanke, but disagreements emerged over the handling of the investment funds, leading to a financial dispute between the two companies.
At that time, Vanke requested Wanda to repay an additional 1.38 billion RMB in principal and interest. However, Wanda argued that they had already repaid 5.24 billion RMB in principal and interest, mentioning that Vanke had enjoyed preferential land cost benefits, which were based on Wanda’s substantial prior investments. Therefore, Wanda disagreed with repaying a further 1.38 billion RMB to Vanke, only agreeing to pay 800 to 1,000 million RMB.
Asset lawyer Lu Ding from Beijing Yingke (Shanghai) Law Firm stated that looking at the dispute itself, this was not the first time the two parties had ended up in court. In June 2023, Vanke had applied to freeze nearly 2 billion shares of Wanda Commercial Management, directly impacting Wanda’s listing plans. Although the two parties had reached a reconciliation intention that year, they ultimately restarted litigation due to disagreements over the legal nature of the land cost benefits and offset rules.
Lu Ding mentioned that the focus of the dispute between the two parties centered on two issues: first, it was unclear whether Vanke’s investment was in equity or redeemable preferred shares. If the agreement explicitly stated a fixed interest rate calculation, Vanke’s argument would be more advantageous. However, if the terms were vague, Wanda might argue against it by claiming that the “actual return rate was too high.” The interest rates at that time were indeed high, but in today’s environment, no one is willing to foot the bill for past high-interest rates. The second dispute concerned the legal classification of the land cost benefits. If Wanda argued that these benefits were part of “investment cost savings” to be offset against debts, Vanke would not have the upper hand. However, the court could also consider it as an independent commercial arrangement, requiring separate handling or counterclaims, depending on the agreements in place at the time.
In 2023, when Vanke applied to freeze Wanda Commercial Management’s shares, Liu Jipeng, then Dean of the Capital Financial Research Institute of China University of Political Science and Law, released a video urging Vanke and Wanda to reach a settlement.
After more than two years, the two parties have once again ended up in court. Behind this legal action lies the fact that both companies are currently mired in debt dilemmas, burdened with significant debt pressure and an urgent need for funds.
Wanda Commercial Management is one of Wanda Group’s core assets and is under immense debt pressure: as of the end of June 2024, interest-bearing debts amounted to a staggering 137.561 billion RMB, with 30.269 billion RMB due for repayment within a year, reflecting high concentrated debt maturity pressures. Moreover, the failure of its subsidiary, Zhuhai Wanda, to complete its listing within the stipulated period triggered buyback requirements.
To repay the debts, Wang Jianlin has been frequently selling off core assets since 2023, including transferring ownership of approximately a hundred Wanda Plazas and divesting shares in Wanda Films.
Companies like Dalian Wanda Group have multiple instances of individuals against whom executions are pending and a significant number of frozen equity records.
Vanke similarly faces severe liquidity challenges and unstable corporate governance issues: by the end of June 2024, non-current liabilities due within a year amounted to 134.713 billion RMB, with only 69.348 billion RMB in cash, resulting in a funding gap exceeding 88.5 billion RMB. Shareholder CRRC Group provided loans to Vanke for the ninth time within the year, with the cumulative amount exceeding 25 billion RMB.
International rating agency Fitch Ratings downgraded Vanke’s issuer rating to “CCC-” due to concerns about its liquidity position.
The management team at Vanke has undergone frequent changes, with Chairman Xin Jie, who took office in January this year, resigning in early October. The board elected Huang Liping to succeed Xin Jie as chairman.