(Bloomberg) — Wang Jianlin used to be Asias richest person, busy expanding his Dalian Wanda Group Co. by acquiring trophy assets overseas, all aided by easy credit.Now the 66-year-old doesnt even figure among Chinas top 30 richest people, having lost about $32 billion of his personal fortune in less than six years — the most for any tycoon in that period. As Wang seeks to cut the groups total debt from 362 billion yuan ($56 billion) and turn his entertainment-to-property empire around, hes facing skeptical bond investors.Braced for a wall of maturing onshore notes peaking this year, some of Wandas dollar bonds were among the first to tumble earlier this month, when a broader decline hit the Asian credit market. The selloff, partly triggered by concerns over the looming payments, came as a warning from investors eager to see how Wang will manage to steer his group clear of the debt risks that convulsed peers such as HNA Group Co., China Evergrande Group and Anbang Group Holdings Co.The groups liquidity is a key consideration for investors, said Dan Wang, an analyst at Bloomberg Intelligence. A representative for Wanda didnt respond to requests for comment on the debt risks.Wandas Wang, who once purchased Spanish soccer club Atletico Madrid as part of the binge-buying and aspired to compete with Walt Disney Co., is still shedding some of those assets. The latest came last week, when Wanda gave up control of AMC Entertainment Holdings Inc., with its stake now representing less than 10% of the worlds largest movie-theater chain. Its chief executive officer said the company would be governed by a wide group of shareholders, and the stock has surged more than 42% in the past three days. Despite the disposals following a government crackdown on credit-fueled expansion, Wanda Groups debt as of June ballooned to the highest since 2017. The pandemic has only added to the woes, dealing a blow to its cinemas, malls, theme parks, hotels and sports events.As China stabilizes its economy after containing the virus, the reopening of movie theaters and malls is providing Wang the much-needed time to steady his ship. Hes pressing ahead with a strategy hes advocated for years, called the asset-light model, to reduce leverage.That means spending less by cutting back on land purchases. Dalian Wanda Commercial Management Group Co., one of the worlds biggest mall operators that accounts for almost half of the groups revenue, will stop buying plots starting this year and license its brand to partners instead, the companys President Xiao Guangrui told mainland media in September.No AlternativeWanda had no real alternative to its new asset-light strategy, said Brock Silvers, chief investment officer at Kaiyuan Capital in Hong Kong, who doesnt hold any Wanda unit shares or bonds. The companys debts were unsustainable.The effect of the pandemic on Wanda has been astounding.Movie producer and cinema operator Wanda Film Holding Co. said it may have racked up a record $1 billion in net loss last year. Despite becoming a favorite in the recent Reddit-fueled share rally, AMC warned several times it was near the brink of insolvency and reported its worst-ever annual loss as revenue plunged 77%. Wanda Commercial Management said sales and profit fell nearly 50% in the first nine months of 2020, while Wanda Sports Group Co.s American depositary receipts were delisted in January after losing more than two-thirds of their value since they began trading in July 2019. Even if Wandas businesses tide over the global health crisis, theres no certainty creditors will be kind after the developments at other indebted Chinese conglomerates such as HNA, Evergrande and lately at Suning Appliance Group Co.In an offering circular in September, Wanda told investors that the groups level of indebtedness may adversely affect some operations. The conglomerate is also facing tighter credit rules in the real estate sector as Chinese regulators look to curb financial risk.Wanda and its units raised about 48.2 billion yuan in local and offshore debt last year, the most since 2016. A part of it was used to pay older obligations as the group needs to refinance or repay about 32 billion yuan of domestic bonds due in 2021.While the groups dollar bonds have almost erased their losses since tumbling earlier this month — their worst week in almost a year — credit traders cited concerns over the groups maturing local bonds and a selloff in some of its onshore notes.Wanda Commercial Managements debt is rated non-investment grade by Fitch Ratings, S&P Global Ratings and Moodys Investors Service.In his heyday, Wang — a former Peoples Liberation Army soldier — jetted around in his Gulfstream G550 private plane, paying top prices for assets including a luxury property in Beverly Hills, Hollywood studio Legendary Entertainment and One Nine Elms in London, one of Europes tallest residential towers.His fortune took a dive as China started to crack down on such expansion and capital outflows. His wealth has shrunk to about $14 billion from a peak of $46 billion in 2015, when he was crowned Asias richest person, according to the Bloomberg Billionaires Index.Wanda gained surprisingly little from its period of unconstrained investment opportunity, said Kaiyuan Capitals Silvers. The company has since been quicker to shed assets than other conglomerates, but it still has far to go.The asset-light strategy would help generate sustainable recurring rental income for Wanda Commercial Management, the cash cow of the group, said Chloe He, corporate-rating director at Fitch. It can also prevent the company from committing heavy capital expenditure and taking on too much debt, she added.This is going to be very helpful for them to deleverage in the future, provided they dont invest in something else, He said.(Updates with AMC stock move in fifth paragraph, Wanda Sports delisting in 11th)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.