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Zhongzhi Enterprise Group

All articles tagged with #zhongzhi enterprise group

finance2 years ago•1 min saved

"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.

via Yahoo Finance|

#beijing-police #finance #insolvency

finance2 years ago•1 min saved

Beijing police investigate China's troubled shadow banking giant Zhongzhi

Beijing police have launched an investigation into Zhongzhi Enterprise Group, a prominent 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 420 billion yuan ($58 billion) to 460 billion yuan ($64 billion) compared to estimated total assets of 200 billion yuan. The police are looking into multiple suspects associated with the company and have urged investors to report their losses to aid the ongoing investigation.

via Reuters.com|

#beijing-police #finance #insolvency

finance2 years ago•3 min saved

China's Zhongzhi: Insolvency and Massive Liabilities Plague Troubled Shadow Bank

Zhongzhi Enterprise Group, a major wealth manager in China, has informed investors that it is heavily insolvent with liabilities of up to $64 billion, raising concerns about the spillover of the country's property debt crisis into the broader financial sector. The firm, which has significant exposure to China's real estate sector, apologized to investors in a letter, stating that its liabilities far exceed its estimated total assets. Zhongzhi's troubles are expected to reignite worries about contagion, although regulators are anticipated to intervene to prevent a wider fallout. The company's financial difficulties highlight the risks associated with China's highly indebted property sector and its shadow banking system.

via Reuters|

#china #finance #insolvency

finance2 years ago•6 min saved

China's Shadow Banks Under Pressure as Real Estate Crisis Deepens

China's property crisis is causing alarm as one of the country's largest shadow banks, Zhongzhi Enterprise Group, and its trust banking arm, Zhongrong, have missed payments to investors, raising concerns of a potential collapse. These shadow banks, which offer lending and investment services without the same regulations as conventional banks, have played a significant role in China's construction boom by extending credit to property developers. The situation highlights the risks associated with high-yield investments and the moral hazard created by the government's history of bailing out indebted financial firms. Beijing faces a dilemma of whether to intervene and risk undermining the message that risky behavior has consequences or let the fallout impact social stability.

via The New York Times|

#china #finance #real-estate-crisis