China Probes $2.8 Billion Freeze at Zhejiang Asset Exchange
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Provincial and municipal authorities in Zhejiang have established special task forces to address a mounting default crisis at Zhejiang Zhejin Asset Operation Co. Ltd., a licensed financial asset exchange that has suspended payouts on wealth management products, stranding nearly 10,000 investors.
The crisis, involving more than 20 billion yuan ($2.8 billion) in financial products, began in late November when investors were unable to redeem matured investments or withdraw cash from their accounts. Since then, Zhejin — formerly the Zhejiang Financial Assets Exchange Center — has fully halted withdrawals, Caixin has learned.
On Monday, local media outlet Tide News reported that investigators are probing Sunriver Holding Group Co. Ltd., the primary issuer behind the troubled products, while also overseeing Zhejin’s cooperation with the inquiry. A government team was dispatched to Sunriver on Dec. 12 to assess the company’s assets and liabilities, the report said.
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- Zhejiang Zhejin Asset Operation Co. Ltd. has suspended payouts on over 20 billion yuan ($2.8 billion) in wealth management products, affecting nearly 10,000 investors.
- Task forces are investigating Sunriver Holding Group, the main issuer, and authorities promise maximum assistance and legal compliance to protect investors.
- The crisis highlights persistent risks in China’s local financial exchanges, despite regulatory crackdowns since 2018, and stems from years of concealed defaults and poor cash flow.
- Zhejiang Zhejin Asset Operation Co. Ltd.
- Zhejiang Zhejin Asset Operation Co. Ltd., a licensed financial asset exchange in China, is facing a default crisis. It suspended payouts on wealth management products, impacting nearly 10,000 investors and involving over 20 billion yuan. Formerly Zhejiang Financial Assets Exchange Center, it was authorized by the provincial government but had its license revoked in October 2024 as part of a nationwide cleanup of local financial exchanges.
- Zhejiang Financial Assets Exchange Center
- The Zhejiang Financial Assets Exchange Center (Zhejin) is a formerly state-authorized financial asset exchange in Zhejiang, China. It has suspended payouts on wealth management products, impacting nearly 10,000 investors and over 20 billion yuan. Zhejin, now rebranded, lost its license in October 2024 as part of a regulatory crackdown on local financial exchanges and is currently undergoing an inquiry.
- Sunriver Holding Group Co. Ltd.
- Sunriver Holding Group Co. Ltd. (深大宏控股集团有限公司) is a diversified conglomerate involved in real estate, tourism, and infrastructure. It is the primary issuer behind troubled wealth management products offered by Zhejiang Zhejin Asset Operation Co. Ltd. Sunriver is currently facing a default crisis with payment issues stemming from cash flow problems, holding approximately 60 billion yuan in assets and over 40 billion yuan in liabilities. Investigators are probing the company, and a government team is assessing its financial situation.
- CEFC China Energy Co. Ltd.
- CEFC China Energy Co. Ltd. was a Shanghai-based company whose 2018 default left billions of yuan in outstanding products on Zhejin's books. This situation suggests that Zhejin's current crisis might have roots dating back several years.
- 2018：
- Beijing launched a clampdown on local financial asset exchanges, including regulatory cleanups.
- 2018：
- Default of Shanghai-based CEFC China Energy Co. Ltd. resulted in billions of yuan in outstanding products left on Zhejin’s books.
- October 2024：
- Zhejiang’s financial authority revoked Zhejin’s license to conduct financial asset trading.
- January 2025：
- Zhejin was rebranded after the license revocation.
- Late November 2025：
- Zhejin suspended payouts on wealth management products and halted withdrawals, stranding nearly 10,000 investors.
- December 12, 2025：
- A government team was dispatched to Sunriver Holding Group Co. Ltd. to assess the company’s assets and liabilities.
- December 12, 2025：
- Executive president Shen Baoshan told gathered investors about Sunriver’s financial strain and ongoing talks with the government.
- December 15, 2025：
- Local media reported that investigators are probing Sunriver and overseeing Zhejin’s cooperation with the inquiry.
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