Posted 11/24/2023, 10:16:48 AM
Chinese Shadow Bank Zhongzhi Declares Bankruptcy with $36 Billion Debt, Spotlights Liquidity Risks in China's Real Estate
- Zhongzhi Enterprise Group, one of China's largest shadow banks, declares itself "severely insolvent" with a shortfall of $36 billion
- Zhongzhi invests heavily in real estate and has faced liquidity issues since its founder died in 2021
- The insolvency underscores liquidity problems in China's $2.9 trillion shadow banking sector
- Zhongzhi attributes its financial troubles to poor internal management and inability to bail itself out
- News of Zhongzhi's insolvency sparks investor complaints and adds to instability in Chinese real estate market