"China's Zhongzhi Shadow Bank Declares Bankruptcy Amid Deepening Debt Crisis"

Zhongzhi Enterprise Group, a Chinese shadow banking conglomerate, has filed for bankruptcy liquidation due to its inability to repay debt amidst a deepening real estate crisis in the country. The company's collapse could impact market confidence and renew concerns over the trust industry, potentially having broader implications for the ailing real estate industry. China's government has been trying to limit the rapid growth of non-bank debt issued by shadow banks, and the country's property sector has been caught in the middle of a crackdown on shadow banking. The broader CSI 300 index fell 1.2% by early afternoon trading, weighed down by property stocks, and analysts warn of potential further trust loan defaults as the debt crisis in the property market continues.