Their property investment market also going to collapse very soon.
Is about time for ROC to take back China to become the real China.
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https://www.theedgesingapore.com/ne...d-china-shadow-bank-zhongzhi-files-bankruptcy
https://www.businesstimes.com.sg/in...manager-zhongzhi-files-bankruptcy-liquidation
Troubled China shadow bank Zhongzhi files for bankruptcy
Shadow banks like Zhongzhi are loosely regulated firms that pool household savings to offer loans and invest in real estate, stocks, bonds and commodities. Photo: Bloomberg
Chinese shadow banking giant Zhongzhi Enterprise Group Co. filed for bankruptcy, cementing the rapid downfall of a firm that oversaw more than US$140 billion ($186.36 billion) at its peak before succumbing to the property crisis that has wreaked havoc on the world’s second-largest economy.
Zhongzhi said it “obviously” lacked the ability to repay its debts, according to a statement Friday from Beijing’s First Intermediate People’s Court, which accepted the case. An audit found Zhongzhi’s debts total 420 billion yuan to 460 billion yuan ($86.17 billion), compared with assets of 200 billion yuan, according to a letter to investors in November.
The downfall marks one of China’s biggest-ever bankruptcies, putting more stress on already fragile consumer and investor sentiment. The property slump, weak domestic demand and sluggish trade are all weighing on the economy, while its benchmark stock index has plunged three years in a row.
The Zhongzhi filing came just months after the lending giant first triggered concerns in the financial markets when one of its trust-company affiliates failed to repay customers on high-yield investment products, sparking protests in Beijing.
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