"China's Troubled Shadow Bank Zhongzhi Under Investigation for Insolvency and Real Estate Crisis"
Beijing police have launched an investigation into Zhongzhi Enterprise Group, a major Chinese wealth manager, following the company's disclosure of heavy insolvency with up to $64 billion in liabilities. Zhongzhi, which has significant exposure to China's real estate and shadow banking sectors, apologized to investors and stated total liabilities of about $58 billion to $64 billion, compared to estimated total assets of $29 billion. The police are looking into "many" suspects involved with the company and have encouraged investors to report their losses to aid the ongoing investigation. The specific crimes being investigated have not been specified.
