"Zhongzhi Bankruptcy: China's Real Estate Woes Claim Major Wealth Manager"

Chinese wealth manager Zhongzhi has declared bankruptcy amid a severe downturn in the property market, highlighting the risks of shadow banking firms that operate with less regulatory oversight. With liabilities around USD 64 billion and insufficient assets to cover debts, the firm's collapse signals wider financial contagion from the real estate crisis. Investors face significant losses, potentially recovering less than 30% of their funds, and the fallout is expected to negatively impact China's financial sector and associated trade markets, such as the Australian dollar.