Major Chinese Wealth Manager Zhongzhi Faces Liquidity Crisis with Liabilities Double Its Assets
• Zhongzhi Enterprise Group, a major Chinese wealth manager, says it has liabilities of $58-64 billion, more than double its assets of $27 billion • The firm has large exposure to China's real estate sector which is facing a liquidity crisis • Zhongzhi is a major player in China's $3 trillion shadow banking sector, its troubles could impact the broader financial sector • Signs of trouble emerged in July when a Zhongzhi-controlled trust company missed payments on investment products • Zhongzhi is seeking strategic investors and has hired an accounting firm to audit the company as it tries to resolve risks