HONG KONG A Shanghai court has ordered the freezing of 1.98 billion yuan ($278.18 million) worth of shares in a unit of Dalian Wanda Group, China's largest commercial property developer.

The shares frozen were issued by Dalian Wanda Commercial Management Group, the property management arm of Dalian Wanda Group.

According to two court notices dated Monday, the shares worth a total of 1.98 billion yuan were ordered frozen until June 4, 2026, company information system TianYanCha showed.

The court orders add to Dalian Wanda Group's woes. It is facing uncertainty over the timing of a Hong Kong IPO of its unit Zhuhai Wanda, repayments stress and a rating downgrade.

S&P Global downgraded Dalian Wanda Commercial Management Group on Monday to 'BB' from 'BB+', citing weakening liquidity of its parent.

"We see heightened risks from Dalian Wanda Group's narrowing financing channels due to extended delay in Zhuhai Wanda's IPO. Weaker property sales than we expected for Wanda Properties Group Co Ltd, a sister company of Wanda Commercial, have worsened the situation for the group," the rating agency said.

China's securities regulator on Friday asked Zhuhai Wanda for more details on its corporate governance as part of its application for an initial public offering in Hong Kong.

($1 = 7.1177 Chinese yuan renminbi)

(Reporting by Clare Jim and Albee Zhang; Editing by Robert Birsel)