November 28, 2023
1 min read

China Probes Major Shadow Bank Zhongzhi For Crimes

Zhongzhi Enterprise Group (ZEG) has an asset management arm that at its peak reportedly handled more than a trillion yuan ($139 billion)…reports Asian Lite News

Chinese officials have launched an investigation into one of the country’s biggest shadow banks, which has lent billions to real estate firms, the media reported.

Zhongzhi Enterprise Group (ZEG) has an asset management arm that at its peak reportedly handled more than a trillion yuan ($139 billion), reports the BBC.

Authorities said they are investigating “suspected illegal crimes” against the firm, in a statement.

This comes days after reports that ZEG had declared it was insolvent.

The struggling firm reportedly told investors in a letter last week that its liabilities – up to $64 billion – had outstripped its assets, now estimated at about $38 billion.

While authorities said they had taken “criminal coercive measures” against “many suspects” it’s still unclear who they are, and what role they play in the firm.

The company’s founder, Xie Zhikun, died of a heart attack in 2021, the BBC reported.

ZEG is a major player in China’s shadow banking industry, a term for a system of lenders, brokers and other credit intermediaries who fall outside the realm of the traditional regulated banking.

Shadow banking, which is unregulated, is not subject to the same kinds of risk, liquidity and capital restrictions as traditional banks.

The latest developments at ZEG has raised concerns of further turmoil in the world’s second-largest economy, after the collapse of property developer Evergrande and more recently the financial woes at Country Garden

ALSO READ: Gilgit-Baltistan Demands Basic Rights

Previous Story

Pakistan: Rainwater Goes Waste Due to Govt Inaction

Next Story

‘Respiratory Illness Cases in China Due to Common Viruses’

Latest from -Top News

Pakistan’s Shadow War in Balochistan

At least 50 killed by Pakistan-backed death squads in Balochistan in April, says HRCB — toll expected to rise in May….reports Asian Lite News The Human Rights Council of Balochistan (HRCB) reported

Russia, Ukraine Resume Talks

The upcoming talks follow a significant hiatus in diplomatic engagement between the two nations, which have been locked in a brutal conflict since Russia’s invasion of Ukraine in February 2022 Russia and

UN Pays Tribute to Indian Soldiers

Thursday was observed as the 77th UN Peacekeepers Day, honouring the work of 61,353 peacekeepers, of whom 5,375 hailed from India….reports Asian Lite News Brigadier Amitabh Jha and Havildar Sanjay Singh, who

Modi’s New Warfare Playbook

Modi has upended the old playbook and India and Pakistan are entering dangerous new territory where nuclear deterrence is no longer a guarantee against conventional conflict…writes Collins Chong Yew Keat The India-Pakistan
Go toTop

Don't Miss

China sets up villages inside Bhutanese territory

The communist regime was developing a village near Doklam in

‘Padma bridge not part of China’s BRI’

No foreign funds from any other bilateral or multilateral funding