Zhongzhi Enterprise Group Files for Bankruptcy Amid Deepening Property Market Downturn

The Chinese wealth manager, with significant exposure to the real estate sector, faces $64 billion in liabilities, raising concerns about the impact on the broader financial sector.

• Zhongzhi Enterprise Group, a major player in China's $3 trillion shadow banking sector, has filed for bankruptcy liquidation after failing to repay debts and having insufficient assets to cover them.
• The company, which has significant exposure to China's real estate sector, is heavily insolvent with up to $64 billion in liabilities.
• Signs of Zhongzhi's financial troubles emerged in July when its subsidiary, Zhongrong International Trust Co, missed payments on several investment products.
• Zhongzhi's bankruptcy raises concerns about the impact of China's property debt crisis on the broader financial sector.
• Experts predict that the court process will be slow and investors may only be able to recover 30% of their money, based on precedent cases.

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