Zhongzhi Enterprise Group
Industryfinancial services, wealth management, mining, electric vehicles[1]
Founded1995 (1995)[1]
FounderXie Zhikun[2][1]
Headquarters
Beijing
,
China
Area served
China
Websitewww.zhongzhi.com.cn

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 it's peak the company controlled $141 billion of assets.[5]

The company was founded in 1995 by Xie Zhikun, who died in December 2021.[2][1][6] The founders death, and subsequent departure of senior executives, was blamed by the company for its struggles in November 2023.[5]

Collapse

In 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

As of January 2024, unless otherwise cited, information from Zhongzhi Enterprise Group.[8]

Businesses controlled by Zhongzhi Enterprise Group
Financial institutionsAsset management companiesWealth management companies
Zhongrong International Trust Co (partly)[4][2]Zhonghai ShengrongHang Tang Wealth
Zhongrong FundZhongzhi InternationalXinhu Wealth
Hengqin Life InsuranceZhongzhi CapitalDatang Wealth
Hengbang Property InsuranceShoutuo RongshengGaosheng Wealth
Zhongrong Huixin Futures
Tianke Holding Group

See also

References

  1. 1 2 3 4 5 Leng, Cheng; Lockett, Hudson; White, Edward (5 January 2024). "Chinese shadow lender Zhongzhi files for bankruptcy". www.ft.com. Retrieved 10 January 2024.
  2. 1 2 3 4 5 He, Laura (27 November 2023). "China launches criminal probe into 'insolvent' shadow bank | CNN Business". CNN. Retrieved 10 January 2024.
  3. 1 2 3 4 "Chinese wealth manager Zhongzhi files for bankruptcy liquidation". Reuters. Reuters. 5 January 2024. Retrieved 10 January 2024.
  4. 1 2 "Chinese asset manager Zhongzhi says it faces a liquidity crisis, Reuters reports citing meeting video". CNBC. Reuters. 17 August 2023. Retrieved 10 January 2024.
  5. 1 2 3 4 5 6 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.
  6. ↑ "China's $138 Billion Shadow Bank Spirals at Terrible Time for Xi". www.bloomberg.com. Bloomberg. 15 August 2023. Retrieved 10 January 2024.
  7. ↑ Gruet, Sam (5 January 2024). "Zhongzhi Enterprise Group: Chinese shadow bank files for bankruptcy". BBC News. Retrieved 10 January 2024.
  8. ↑ "Company Profile". www.zhongzhi.com.cn. Zhongzhi Enterprise Group. Archived from the original on 6 January 2024. Retrieved 10 January 2024.
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