|Ellie Froilan |||Apr 11, 2017 02:35 AM EDT|
(Photo : Getty Images) Wanda's healthcare investment is the largest plan of the company.
Dalian Wanda Group Co Ltd has announced its plan of investing CNY 70 billion ($10 billion) in a health park located at Sichuan Province, southwest of China.
The company said that they are planning to tap demand for private healthcare. Wanda’s investment can be a solution when China's public hospitals are facing tough demands from a fast-ageing population and tightening budgets as the government looks to reduce state hospitals' reliance on drug sales. The said park will develop space for private firms that belong to healthcare industry.
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The agreement with the Chengdu city government includes creation of a 'park' with two international general hospitals, eight small specialized hospitals and 30 healthcare-related firms. The new venture of the company signifies the China's richest man Wang Jianlin’s ambitious push into the fast-growing healthcare industry.
This is so far Wanda's largest investment to date. Dalian Wanda’s business includes property development, shopping malls, cinema chains and theme parks. The Chinese multinational conglomerate corporation has been spending a great deal on parks around China, which are all related to sports, leisure and health. The goal is to capitalize on growing middle class demand such as healthcare and entertainment.
Private hospital market in China is considered as a lure for both local and foreign hospital operators. However, its frequent changes on regulations regarding foreign investment in the sector is being attributed to the slow growth of doctors and nascent private insurance schemes.
Aside from Dalian Wanda, its competitor Fosun International in increasing its focus as well on healthcare and announced various healthcare-related deals over the past year.
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