China’s securities watchdog has asked property management firm Zhuhai Wanda Commercial Management Group for more details on its corporate governance as part of its application for an initial public offering in Hong Kong.

Uncertainty over the timing of Zhuhai Wanda’s IPO has led to investor concerns over the liquidity of parent Wanda Commercial, a unit of China’s largest commercial property developer Dalian Wanda Group.

The company would need to repurchase shares worth 40 billion yuan ($5.62 billion) if the IPO is not completed by year end.

In a filing dated June 2, the CSRC asked Zhuhai Wanda to provide supplementary information for the application, focusing on financial dealings with its controlling shareholder.

Enquiries included whether the firm is providing guarantees to its controlling shareholder and related parties, dividend payout policy, and measures to ensure the IPO proceeds will not be used in real estate development.

CSRC also asked Zhuhai Wanda to provide details on how it derived the 98.8% average letting rate in the plazas it manages, and how it is preventing staff from false-reporting the numbers.

Last week, Fitch downgraded Wanda Commercial to “BB-” from “BB+” followed a weakening in the consolidated profile of parent Dalian Wanda Group, amid media reports that sister company Wanda Properties was seeking to extend short-term bank loans.