Sept 28 Reuters China39;s Dalian Wanda Group has started negotiations on a proposal to avoid repaying about 30 billion yuan 4.11 billion to investors in its commercial property management business if it fails to complete its initial public offering IPO this year, Bloomberg News reported on Thursday.

The Chinese conglomerate recently told investors that an IPO of the unit, Zhuhai Wanda Commercial Management Group Co, will likely take place next year, Bloomberg reported, citing people familiar with the matter.

Dalian Wanda, China39;s largest commercial property developer, did not immediately respond to a Reuters request for comment.

Wanda raised nearly 6 billion for the commercial property business in 2021 from investors including Hong Kongbased private equity firm PAG, developer Country Garden, private equity firm CITIC Capital and tech giants Tencent Holdings and billionaire Jack Ma39;s Ant Group, Reuters reported.

In June, China39;s securities watchdog asked Zhuhai Wanda Commercial Management Group for more details on its corporate governance as part of its application for an IPO in Hong Kong.

Uncertainty over the timing of Zhuhai Wanda39;s IPO has led to investor concerns over the liquidity of parent Wanda Commercial, a unit of Dalian Wanda Group.

In July, Fitch Ratings downgraded the longterm foreigncurrency issuer default rating IDR of Dalian Wanda Commercial Management Group to B from BB.

Fitch cut the ratings after a further weakening in the consolidated…