Wealth Manager Zhongzhi’s Bankruptcy Application
Zhongzi, the conglomerate at the center of China's $3 trillion shadow banking market, has filed for bankruptcy, saying it is "seriously insolvent."
A Beijing court on Friday accepted Zhongzhi's bankruptcy and liquidation application, saying the group was unable to pay its debts.
In an open letter to investors, Zhongzhi said not only that it was "seriously bankrupt" but that management had "ran wild" following the death of founder Xie Ziqun in 2021. It said total assets were only Rmb200bn ($28bn) against liabilities of up to Rmb460bn.
Zhongzi's wealth management arm came under police investigation in November over undisclosed crimes, days after the group announced a $36.4 billion shortfall.
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