China's Shadow-Banking Crisis: Investigations, Losses, and Arrests
Chinese authorities have taken "criminal coercive measures" against employees of Zhongzhi Enterprise, one of China's largest shadow lenders, as the company struggles to fulfill promised payments to investors. Zhongzhi, a privately held conglomerate, sold investment products to wealthy individuals and companies in China. The arrests are part of China's efforts to contain the growing financial troubles in the shadow banking sector.