(Yicai Global) July 11 -- Chinese conglomerate Wanda Group's commercial property management unit is getting one step closer to its much-anticipated initial public offering in Hong Kong that is key to its parent's borrowing costs after around CNY5.1 billion (USD707.9 million) worth of shares were unfrozen.

Courts in Guangdong and Shandong provinces yesterday stopped restricting trading of two lots of shares of Zhuhai Wanda Commercial Management Group that had been locked up for three years, corporate information provider Qichacha shows, citing the National Enterprise Credit Information Publicity System.

The specific reasons for the moves are unknown, according to sources close to the Beijing-based entertainment and property conglomerate. The firm has not commented on the credit data change.

Founded in March 2021, Zhuhai-based Wanda Commercial has about CNY7.3 billion (USD1 billion) in registered capital. Its largest shareholder is Dalian Wanda Commercial Management Group, a unit of Wanda Group.

Credit conditions are acutely important for Zhuhai Wanda Commercial but also for its parent. The property management firm updated its listing application for the fourth time on June 28. If it fails to get listed this year it will need to pay almost CNY30 billion (USD4.2 billion) to its pre-listing investors to buy back its shares.

Wanda Group has three overseas bank loans worth USD1.3 billion in total and the liquidity and credit conditions of both the parent and Dalian Wanda Commercial will deteriorate if the listing fails, per credit ratings agency S&P Global Ratings.

Zhuhai Wanda Commercial had similar problems as before this, almost CNY982 million (USD136.4 million) worth of equity was unfrozen. But other affiliates of the Chinese conglomerate that has been shedding billions of yuan of theme park and luxury hotel assets in recent years have not been as lucky as well.

Early last month, trading of about two billion shares of Dalian Wanda Commercial was restricted even though the firm said it is appealing the decision through legal channels.

At that time, Wanda Group said it had a financial dispute exceeding CNY1 billion with a company. However, it is unclear which dispute it referred to as the valuation of Dalian Wanda Commercial with its around 4.5 billion shares was already CNY243 billion in 2018 so the above-mentioned two billion shares would be worth much more than CNY1 billion.

Editor: Emmi Laine