Major Chinese shadow bank files for bankruptcy
Zhongzhi Enterprise Group’s $36.5 billion shortfall raises fears of contagion from property downturn
A major Chinese shadow bank has filed for bankruptcy, adding to worries the country’s property crisis is spreading to the broader financial sectors.
Beijing’s First Intermediate People’s Court said on social media on January 5 that it has accepted the application from Zhongzhi Enterprise Group (ZEG). It said the trust company clearly lacks the ability to repay debt and it had insufficient assets to pay off its dues.
China’s trust industry is a key funding source for borrowers unable to get bank
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