NTES - Chinese Court Accepts Wealth Manager Zhongzhi's Bankruptcy Appeal Amid Property Market Turmoil | Benzinga
In a significant development, Beijing’s court has accepted the application for bankruptcy liquidation from Zhongzhi Enterprise Group, a renowned wealth management firm in China.
What Happened: The Beijing-based wealth management company, which has substantial exposure to China’s real estate sector, justified its bankruptcy application due to its inability to clear its debts, Reuters reported.
The court accepted the application on Friday, noting that the company’s assets were insufficient to cover its debts.
Zhongzhi, in a letter to its investors in November, had admitted to being heavily insolvent with a debt of around $64 billion, overshadowing its estimated total assets of $27.95 billion, according to the court statement.
The company had previously signaled financial difficulties in July when Zhongrong International Trust Co, a prominent trust company under Zhongzhi’s control, failed to meet payments on numerous investment products.
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These events have sparked concerns about the impact of China’s property debt crisis on the ...