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

Taipei Gets Tough on Beijing

The new move marks one of the most comprehensive efforts in recent years to strengthen Taiwan’s legal defences against Beijing’s covert attempts…reports Asian Lite News Taiwanese lawmakers from both the ruling and

Pakistan Warns Afghanistan War

Pakistan’s Defence Minister Khawaja Asif warned that Islamabad could enter an “open war” with Kabul if peace talks in Istanbul fail to ease rising Afghan border tensions…reports Asian Lite News Pakistan’s Defence

UN Signs Landmark Cybercrime Treaty

Malaysia’s foreign minister warned ASEAN is losing neutrality amid rising global power competition, ahead of the bloc’s annual summit….reports Asian Lite News Sixty-five nations have signed a landmark United Nations convention in

Malaysia Warns ASEAN Neutrality Eroding

Malaysia’s foreign minister warned ASEAN is losing neutrality amid rising global power competition, ahead of the bloc’s annual summit….reports Asian Lite News  Malaysia’s foreign minister has warned Southeast Asian counterparts that the

Trump Treads Carefully on Taiwan

Trump confirmed that Taiwan would be among the topics likely to come up during his discussions with Xi…reports Asian Lite News As US President Donald Trump began his five-day tour of Asia
Go toTop

Don't Miss

Why is Arunachal Pradesh so important to China?

Experts believe that China seeks to use the Arunachal issue

China lauds great progress made in India border deal 

Wu emphasized the mutual commitment of both nations to de-escalate