For Wanda, one of China’s largest retail property and entertainment groups, the transaction addresses political risk — specifically official concern that its borrowing from Chinese institutions is so high it presents systemic risk to the banking system.

Its sale of assets to Sunac allows Wanda to cut debt and is expected to make it easier to get regulatory approval for its plan to relist its subsidiary Dalian Wanda Commercial Properties (DWCP) in China.

With regulators focused on the debts of China’s property conglomerates, selling assets was for Wanda “a politically correct move” said Andrew Polk, an economist at the Conference Board in Beijing. “They would not be making such a big splash if they weren’t trying to set a good example. Regulators are focused on de-risking.”