Chinese Shadow Bank Zhongzhi Enterprise Group Files for Bankruptcy as Real Estate Crisis Deepens, Signaling Troubled Economy
• Zhongzhi Enterprise Group, one of China's largest shadow banks, has filed for bankruptcy as the nation faces a real estate crisis • The company oversaw $140 billion in investments at its peak before property prices started falling • Zhongzhi's insolvency puts further pressure on China's struggling economy already impacted by COVID-19 • Most of Zhongzhi's creditors are individual investors rather than institutions, which may dampen consumer demand • The firm invested widely across real estate, stocks, and other assets, and its failure signals deeper troubles in China's financial system