China’s Largest Private Financial Conglomerate Implodes: $510 Billion at Risk of Vanishing

China’s Largest Private Financial Conglomerate Implodes: $510 Billion at Risk of Vanishing

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A typically low-profile yet impactful Chinese private enterprise giant, Zhongzhi Group faces staggering debt. Analysis by mainland media suggests that the collapse is largely due to its vast business portfolio, encompassing real estate, finance, energy, and more. Before July 31 this year, 106 trust products under Zhongzhi defaulted, totaling about 44 billion yuan (about 6 billion USD), with real estate investments making up 74%. The default in real estate investments is a major risk for Zhongzhi. Over the past two years, Zhongrong Trust, under Zhongzhi, has been involved in almost every real estate debacle, including at least 15 property enterprises like China Evergrande, Kaisa Group, and Sunac. Diversified investments have led to accumulating debts, placing immense financial pressure on this former financial giant.