Chinese billionaire Wang Jianlin warns that China’s real-estate market is the “biggest bubble in history.”
The big problem, according to Wang, is that prices keep rising in major Chinese areas like Shanghai but are falling in thousands of smaller cities.
"I don't see a good solution to this problem," he told CNNMoney. "The government has come up with all sorts of measures -- limiting purchase or credit -- but none have worked," he said.
"The problem is the economy hasn't bottomed out," Wang said. "If we remove leverage too fast, the economy may suffer further. So we'll have to wait until the economy is back on the track of rebounding -- that's when we gradually reduce leverage and debts."
He says, though, that he's not worried about the prospect of a "hard landing" -- a sudden and catastrophic collapse in economic growth.
His comments came just after a private survey showed that China's economy was less healthy in the third quarter than a recent spate of upbeat data suggest, with growth coming exclusively from manufacturing and property while the services and retail sectors faltered.
Manufacturing posted its fastest expansion nationally, with 53 percent of companies seeing revenue gains, up 3 percent from a year earlier, a quarterly survey of more than 3,100 firms by China Beige Book International (CBB) showed.
Official data for August raised hopes the economy was stabilizing and perhaps even picking up, with industrial output, retail sales and property investment all quickening more than expected, while industrial profits grew at the strongest pace in three years, Reuters reported.
But while the property sector showed another quarter of strong growth, there are signs that China's real estate boom is starting to stutter, the CBB report said.
Property sales revenue is uneven across the country, while companies' cash flow weakened, prompting a spree of new borrowing that will likely add to worries about rapidly rising debt levels. Moreover, more and more cities are tightening restrictions on home purchases as prices soar.
Wang is the richest man in China, according to Forbes and Hurun Report data from 2015, and his real estate and entertainment empire brought in revenue of about $44 billion last year.
Wang has been warning of trouble in the Chinese property market for a while. His Dalian Wanda Group, which has developed huge malls and office complexes across China, has been gradually cutting back on its real estate business. Wang has been directing money into entertainment, sports and tourism.
Wang's comments follow news that Dalian Wanda is in talks to buy a controlling stake in Dick Clark Productions, the company that runs the Golden Globe awards and Miss America pageants, as it expands a growing Hollywood portfolio.
Wanda already owns Legendary Entertainment, co-producer of film hits such as "Jurassic World" - which was the biggest U.S.-China movie deal when it was sealed in January. It also owns U.S. cinema chain AMC Entertainment Holdings (AMC.N).
A source familiar with deal told Reuters that Wanda was looking to bid $1 billion for the TV production company, but cautioned the deal was not yet certain. The person could not be named as the deal value is not public.
Wang told Reuters he expected to seal two billion-dollar deals in the U.S. this year. He aims to bring Hollywood technology and muscle to China, and has expressed interest in the so-called "big six" Hollywood studios.
"Only the six are real global film companies, while the rest are not. If we are to build a real movie empire, this is a necessary step," Wang said then.
Revenue from Wanda's cultural division, which also includes its growing tourism business, theme parks and sports, is expected to grow at least 30 percent this year, potentially reaching 70 billion yuan ($10.5 billion), according to Wang.
(Newsmax wire services contributed to this report).
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