Chinese regulators reportely set up working group as early as July to examine debt, risks of conglomerate Zhongzhi Group
STOCKS
Chinese regulators reportely set up working group as early as July to examine debt, risks of conglomerate Zhongzhi Group
STOCKS

Chinese regulators reportely set up working group as early as July to examine debt, risks of conglomerate Zhongzhi Group

 

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China’s National Administration of Financial Regulation set up a working group as early as last month to examine the outstanding debts and risks of Chinese conglomerate Zhongzhi Group’s major financial companies, which now manage assets of more than RMB1 trillion, reported Bloomberg News, citing people familiar with the matter. 

Zhongrong International Trust has failed to make payment on some trust products on time, according to several companies’s filings to the stock exchanges in Shanghai and Shenzhen. Zhongzhi is the second largest shareholder of Zhongrong International Trust with a shareholding of approximately 33%. 

The Chinese regulator required Zhongrong International Trust to report on its future repayment plans and saleable assets to cope with the liquidity crunch, according to the report. 

Nearly half of the funds raised by Zhongrong went to its parent or affiliates, it said.