Posted 1/8/2024, 5:07:00 AM
China Pushes for Swift Bankruptcy of Troubled Shadow Bank Zhongzhi to Contain Financial Fallout
- Chinese leaders pushed for a quick resolution for troubled shadow banking giant Zhongzhi to contain financial risks and protect markets
- Top officials concluded bankruptcy was the most effective approach less than 3 months after Zhongzhi defaulted
- The swiftness shows little tolerance for risks as leaders seek to prevent the property crisis from hurting the financial system
- Zhongzhi's bankruptcy is one of China's biggest ever and risks hurting fragile consumer and investor sentiment
- The push for bankruptcy was based on a review by a regulatory task force, indicating efficient handling of troubled firms