Zhongzhi Declares Itself ‘Severely Insolvent’ as Debt Soars to $65 Billion

What’s new: China’s embattled investment conglomerate Zhongzhi Enterprise Group said it is “severely insolvent” while disclosing a financial shortfall of up to 260 billion yuan ($36.5 billion).

In a letter to investors published on Wednesday, Zhongzhi stated that an audit of its balance sheet revealed that the company has debts ranging from about 420 billion yuan to 460 billion yuan ($59 billion - $64.6 billion), more than twice its assets of 200 billion yuan.