Chinese Shadow Bank Zhongzhi Enterprise Group Reveals $65 Billion Debt, Insolvency Fears Grow
• Chinese shadow bank Zhongzhi Enterprise Group says it has "$65B in debt" and is "severely insolvent"
• ZEG has significant exposure to China's "ailing property sector" and says assets are impaired and liquidity is exhausted
• ZEG apologized to investors, citing "ineffective management" since founder died in 2021
• Defaults or delayed payments in $3T Chinese "shadow banking" sector could hurt consumer confidence
• ZEG partial owner, Zhongrong Trust, missed payments to investors in August, triggering wider insolvency fears