Wanda Group partners with Vanke (19.92, 0.32, 1.63%) (02202.HK) to develop the real estate business. The Credit Suisse report indicates that the cooperation process between the two may take time, but it is believed that there will be obvious synergies in the long term.

Some investors are concerned that Wanda Commercial (68.2, 1.20, 1.79%) (03699.HK)'s inventory is mainly located in low-tier cities. The bank expects Vanke to join the development, and the joint venture will reduce Wanda's inventory and dispel investors' concerns.

Furthermore, the bank mentioned that Wanda's shopping mall business in low-tier cities was better than expected, so it increased its net asset value and raised Wanda's earnings per share by 1-3% in 2015-17. The target price was raised from 60 yuan to 81 yuan. The current price was discounted by 30% compared to net asset value. Most interbank discounts were significantly lower, maintaining the “outperform the market” rating.