FINANCE

China Shadow-Banking Platform Freezes $2.8 Billion, Leaving Thousands Locked Out

Published: Dec. 8, 2025 6:30 p.m. GMT+8

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The Zhejiang Financial Assets Exchange

A local financial asset exchange in East China has frozen withdrawals on products worth more than 20 billion yuan ($2.8 billion), leaving nearly 10,000 investors unable to access their holdings and prompting investors to gather and seek a repayment plan, according to multiple investors.

The crisis highlights lingering vulnerabilities in China’s shadow banking system, where lightly regulated local financial asset exchanges long served as gray-market financing channels.

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Zhejiang Financial Assets Exchange froze over 20 billion yuan ($2.8 billion) in products, affecting nearly 10,000 investors since November 27, 2024.
The crisis reveals risks in China’s shadow banking sector, with Sunriver Holding Group citing 60 billion yuan in assets but over 40 billion yuan in liabilities.
Despite revoked trading licenses, investors trusted the exchange due to its state-backed history, but now face uncertainty and repayment delays.

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Who’s Who

Zhejiang Financial Assets Exchange: The Zhejiang Financial Assets Exchange (浙金中心) is a financial asset exchange in East China. It froze withdrawals on products exceeding 20 billion yuan, affecting nearly 10,000 investors. This crisis highlights vulnerabilities in China's shadow banking system. The exchange's license for financial asset trading was revoked in October 2024, but existing contracts were to remain valid.

Sunriver Holding Group Co. Ltd.: Sunriver Holding Group Co. Ltd. is a diversified Chinese conglomerate involved in real estate, tourism, and infrastructure. It is facing significant financial strain, with assets of approximately 60 billion yuan and liabilities exceeding 40 billion yuan, leading to cash-flow pressure. The company is a main fund user and credit enhancement provider for products on the Zhejiang Financial Assets Exchange, which has frozen withdrawals, impacting nearly 10,000 investors.

Zhejiang Sunriver Culture Tourism Co. Ltd.: Zhejiang Sunriver Culture Tourism Co. Ltd. (600576.SH) is an affiliate of Sunriver Holding Group Co. Ltd. It maintains it bears no guarantee obligations related to the frozen withdrawal crisis at Zhejiang Financial Assets Exchange, despite its parent company facing financial strain. Its shares have fallen due to the situation.

Anhui Gourgen Traffic Construction Co. Ltd.: Anhui Gourgen Traffic Construction Co. Ltd. is a listed affiliate of Sunriver Holding Group Co. Ltd. (603815.SH). While facing financial strain, the company has stated it bears no guarantee obligations related to the frozen withdrawals on products from the Zhejiang Financial Assets Exchange. Despite this, its shares have fallen in recent trading days.

Haichang Ocean Park Holdings Ltd.: Haichang Ocean Park Holdings Ltd. is a Hong Kong-listed affiliate of Sunriver Holding Group Co. Ltd. Its shares have fallen recently, despite the company stating it bears no guarantee obligations related to the frozen withdrawals from a local financial asset exchange in East China.

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What Happened When

October 2024：: Regulators revoked the Zhejiang Financial Assets Exchange’s license to conduct financial asset trading, but allowed existing contracts to remain valid.

November 27, 2025：: Users of the Zhejiang Financial Assets Exchange’s app found that transaction records were missing and maturity payments were delayed.

November 28, 2025：: All withdrawal functions were halted at the Zhejiang Financial Assets Exchange.

December 6, 2025：: An executive from Sunriver Holding Group Co. Ltd. told gathered investors that the group faced cash-flow pressure with about 60 billion yuan in assets and over 40 billion yuan in liabilities.

December 7, 2025：: Hundreds of investors gathered at the Shaoxing headquarters of Sunriver Holding Group Co. Ltd., but left without a repayment plan.

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