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Zhongzhi Enterprise Group

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(Redirected from Xie Zhikun) Chinese business conglomerate For the subsidiary company, see Zhongzhi Capital.
Zhongzhi Enterprise Group
Industryfinancial services, wealth management, mining, electric vehicles
Founded1995; 30 years ago (1995)
FounderXie Zhikun
HeadquartersBeijing, China
Area servedChina
Websitewww.zhongzhi.com.cn Edit this at Wikidata

Zhongzhi Enterprise Group (Chinese: 中融鼎新, hereafter Zhongzhi) is a Chinese business conglomerate. It has been described as a shadow bank in the Chinese financial system. The company is heavily linked to the Chinese real estate sector, which since 2020 has been experiencing difficulties. At its peak, the company controlled $141 billion of assets. On 5 January 2024, the company declared itself bankrupt.

The company was founded in 1995 by Xie Zhikun, who died in December 2021. The founder's death, and subsequent departure of senior executives, was blamed by the company for its struggles in November 2023.

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In November 2023, the company noted to investors that it was "heavily insolvent with up to $64 billion in liabilities", or a shortfall of $36.4 billion. It was noted after the fact, that problems had been around since August 2023 when a subsidiary had missed payments. Soon after this, the Chinese authorities started investigations against the company.

On 5 January 2024, Zhongzhi declared bankruptcy at the Beijing First Intermediate People’s Court after it could not repay its outstanding debts.

Controlled businesses

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

Businesses controlled by Zhongzhi Enterprise Group
Financial institutions Asset management companies Wealth management companies
Zhongrong International Trust Co (partly) 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

References

  1. ^ Leng, Cheng; Lockett, Hudson; White, Edward (5 January 2024). "Chinese shadow lender Zhongzhi files for bankruptcy". www.ft.com. Retrieved 10 January 2024.
  2. ^ He, Laura (27 November 2023). "China launches criminal probe into 'insolvent' shadow bank | CNN Business". CNN. Retrieved 10 January 2024.
  3. ^ "Chinese wealth manager Zhongzhi files for bankruptcy liquidation". Reuters. Reuters. 5 January 2024. Retrieved 10 January 2024.
  4. ^ "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. ^ 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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