“We expect China’s government through its SOEs to be in a strong position to gain from the Wanda fallout,” the analyst, who reportedly declined to be named, was quoted as saying.

CREC is a state-owned holding company, under the supervision of the Chinese government’s State Council.

“After all, there are strategic interests in the project for the Chinese government – and Malaysia can capitalise on this, while working on further deepening of ties between two countries,” the analyst was quoted as saying.

On May 3, TRX City Sdn Bhd which comes under the Finance Ministry, announced that the share sale agreement with Beijing’s CREC and IWH regarding the sale of 60% of Bandar Malaysia’s issued and paid-up capital had lapsed and was therefore terminated.

It said this was due to the failure of the purchasing parties to fulfil payment obligations.

The Bandar Malaysia urban development project, with an estimated cumulative gross development value of RM150 billion, is planned on the site of the current site of the Sungei Besi airport in Kuala Lumpur which has been used by the Royal Malaysian Air Force.

Developed as a public-private partnership initiative, it is expected to be completed over the next thirty years.

It will also house the terminus of the planned KL-Singapore High Speed Rail (HSR) project which is expected to be ready by 2026.

In May, Dalian Wanda Group chairman Wang Jianlin, China’s richest man, told the media in Beijing at a joint press conference with Najib that the company’s possible investment in the project would be “really huge”, estimating it at more than US$10 billion (RM44 billion).

“While we have not reached an agreement yet, I am here expressing my stance,” he was reported to have said.

However, the Wall Street Journal (WSJ) later reported that China’s banking regulators told executives of the country’s state-owned lenders that six of Dalian Wanda’s foreign acquisitions were subject to government capital restrictions.

In addition, Beijing was preventing the company from using funds parked on the mainland to further finance any of these deals, the WSJ reported.