The chairman of Chinese conglomerate Dalian Wanda Group and the country’s richest man has said that there is a property market bubble in China but the industry won’t collapse as there is still a significant potential for urbanization.
China’s real estate investment growth quickened in October to its highest since April 2014, data showed. This suggested that property developers have not yet felt any notable pressure from recent measures to curb speculative home purchases.
“Yes, there’s a bubble in China,” Wang Jianlin told a conference in Jakarta. Jianlin was ranked by Forbes as China’s richest man this year with a net worth of $28.7 billion.
“Particularly in the last few years it’s quite big, but (the sector) will not collapse,” he said, noting that a significant part of the population in China still lives in rural areas and would like to move to the cities.
Wang said the group wants to own 20% of all cinemas in the world within 10 years, but did not give details on how it would achieve that.
Earlier this month, Wanda continued its buying spree in Hollywood when it signed an agreement for the $1 billion takeover of Dick Clark Productions, the U.S. company that runs the Golden Globe awards and Miss America pageants.