Zhongzhi Enterprise Group (Chinese: 中融鼎新, hereafter Zhongzhi) is a Chinese business conglomerate.[3] It has been described as a shadow bank in the Chinese financial system.[3][4][2] The company is heavily linked to the Chinese real estate sector, which since 2020 has been experiencing difficulties.[2] At its peak, the company controlled $141 billion of assets.[5] On 5 January 2024, the company declared itself bankrupt.[3]
| Industry | financial services, wealth management, mining, electric vehicles[1] |
|---|---|
| Founded | 1995[1] |
| Founder | Xie Zhikun[2][1] |
| Headquarters | Beijing , China |
Area served | China |
| Website | www |
The company was founded in 1995 by Xie Zhikun, who died in December 2021.[2][1][6] The founder's death, and subsequent departure of senior executives, was blamed by the company for its struggles in November 2023.[5]
Collapse
editIn November 2023, the company noted to investors that it was "heavily insolvent with up to $64 billion in liabilities",[3] or a shortfall of $36.4 billion.[5] It was noted after the fact, that problems had been around since August 2023 when a subsidiary had missed payments.[5] Soon after this, the Chinese authorities started investigations against the company.[5]
On 5 January 2024, Zhongzhi declared bankruptcy at the Beijing First Intermediate People’s Court after it could not repay its outstanding debts.[3][1][7][5]
Controlled businesses
editAs of January 2024[update], unless otherwise cited, information from Zhongzhi Enterprise Group.[8]
| Financial institutions | Asset management companies | Wealth management companies |
|---|---|---|
| Zhongrong International Trust Co (partly)[4][2] | Zhonghai Shengrong | Hang Tang Wealth |
| Zhongrong Fund | Zhongzhi International | Xinhu Wealth |
| Hengqin Life Insurance | Zhongzhi Capital | Datang Wealth |
| Hengbang Property Insurance | Shoutuo Rongsheng | Gaosheng Wealth |
| Zhongrong Huixin Futures | ||
| Tianke Holding Group |
See also
editReferences
edit- ^ a b c d e Leng, Cheng; Lockett, Hudson; White, Edward (5 January 2024). "Chinese shadow lender Zhongzhi files for bankruptcy". www.ft.com. Retrieved 10 January 2024.
- ^ a b c d e He, Laura (27 November 2023). "China launches criminal probe into 'insolvent' shadow bank | CNN Business". CNN. Retrieved 10 January 2024.
- ^ a b c d e "Chinese wealth manager Zhongzhi files for bankruptcy liquidation". Reuters. Reuters. 5 January 2024. Retrieved 10 January 2024.
- ^ a b "Chinese asset manager Zhongzhi says it faces a liquidity crisis, Reuters reports citing meeting video". CNBC. Reuters. 17 August 2023. Retrieved 10 January 2024.
- ^ a b c d e f Lim, Lionel (8 January 2024). "A Chinese shadow bank is the latest casualty of the country's real estate crisis, declaring bankruptcy with up to $65B in debt". Fortune Asia. Retrieved 12 January 2024.
- ^ "China's $138 Billion Shadow Bank Spirals at Terrible Time for Xi". www.bloomberg.com. Bloomberg. 15 August 2023. Retrieved 10 January 2024.
- ^ Gruet, Sam (5 January 2024). "Zhongzhi Enterprise Group: Chinese shadow bank files for bankruptcy". BBC News. Retrieved 10 January 2024.
- ^ "Company Profile". www.zhongzhi.com.cn. Zhongzhi Enterprise Group. Archived from the original on 6 January 2024. Retrieved 10 January 2024.