Chinese financial conglomerate Zhongzhi Enterprise Group Co. filed for bankruptcy and liquidation due to “total insolvency.” The Financial Times writes about this.
► Subscribe to the Telegram channel of the Ministry of Finance: main financial news
In the statement , filed in a Beijing court, the financial company said it was unable to repay its debts.
Back in November, Zhongzhi told investors that its audited book value of assets was 200 billion yuan ($28 billion), and its liabilities were 200 billion yuan ($28 billion). about 460 billion yuan.
Zhongzhi was one of the largest private players in the Chinese wealth management market and, at the peak of its activity, managed assets worth over $140 billion.
The collapse of the company , which occupied a central place in China's shadow banking system, is associated, in particular, with the decline in the real estate market and exacerbates concerns that other representatives of the financial sector may also experience difficulties, writes FT.