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Zhongzhi

All articles tagged with #zhongzhi

business-and-finance2 years ago•0 min saved

"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.

via ForexLive|

##bankruptcy #business-and-finance

business2 years ago•2 min saved

China Investigates Troubled Financial Conglomerate Zhongzhi for Potential Crimes and Losses

Chinese financial conglomerate Zhongzhi is now under criminal investigation by Beijing police, suspected of committing "illegal crimes." The company recently informed investors that it is severely insolvent, with liabilities of up to 460 billion yuan ($65 billion) against assets of 200 billion yuan. Zhongzhi, which controls multiple asset and wealth management firms, has struggled with ineffective internal management since the death of its founder in 2021. The company's financial troubles are linked to its strong ties with China's real estate sector, which has been hit by a prolonged property downturn and regulatory crackdown on reckless borrowing.

via CNN|

#business #china #criminal-investigation

finance2 years ago•0 min saved

China Launches Investigation into Troubled Shadow Bank Zhongzhi, Detains Suspects

China has launched an investigation into Zhongzhi, a struggling shadow bank, as part of its efforts to crack down on financial risks in the country. The probe comes amid concerns over the stability of China's financial system and the potential for a debt crisis.

via Financial Times|

#china #finance #probe

business2 years ago•1 min saved

Zhongzhi, Chinese asset manager, faces liquidity crisis, reveals meeting video

Chinese asset manager Zhongzhi Enterprise Group has informed investors that it is facing a liquidity crisis and will undergo debt restructuring, as the company grapples with the deepening property market downturn. Zhongzhi has hired a Big Four accounting firm to conduct an audit and is seeking strategic investors. The company's subsidiary, Zhongrong International Trust Co, has missed payments on numerous investment products since July. Zhongzhi's management team stated that the plan is to "self-rescue" through restructuring, focusing on debt collection and asset liquidation, but bankruptcy is also a possibility.

via CNBC|

#business #chinese-asset-manager #debt-restructuring