China Court Widens Shadow Banking Giant Zhongzhi’s Bankruptcy Case
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
A Beijing court has expanded the scope of the bankruptcy liquidation of collapsed shadow banking conglomerate Zhongzhi Enterprise Group, adding 68 affiliated companies and taking the case to 316 entities.
The court said Friday that it had received an application from Zhongzhi’s court-appointed administrator to merge the liquidation of the newly added firms with the 248 companies already under review. Creditors have until Feb. 13 to raise objections.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- Beijing court expanded Zhongzhi’s bankruptcy liquidation to 316 entities, adding 68 affiliates.
- Zhongzhi’s liabilities are 420–460 billion yuan, assets only 200 billion yuan, leaving a gap up to 260 billion yuan.
- Some Zhongzhi executives received prison terms of 4.5–14 years for illegally absorbing public deposits.
AI generated, for reference only
Who’s Who
- Zhongzhi Enterprise Group
- Zhongzhi Enterprise Group is a collapsed Chinese shadow banking conglomerate founded in 1995 by Xie Zhikun. It aggressively expanded into wealth management after 2008. The company is deeply insolvent, with estimated liabilities far exceeding its assets. A Beijing court is overseeing the bankruptcy liquidation, expanding it to include 316 entities due to commingled assets and liabilities. Some executives have already received prison sentences for illegal activities.
AI generated, for reference only
What Happened When
- 1995：
- Zhongzhi Enterprise Group was founded by Xie Zhikun.
- After 2008：
- Zhongzhi expanded aggressively into wealth management and shadow banking activities.
- November 2023：
- Zhongzhi sent a letter to investors estimating total assets of around 200 billion yuan and liabilities of 420 billion to 460 billion yuan.
- December 2025：
- A Beijing court sentenced some Zhongzhi executives to prison terms ranging from four and a half to 14 years for illegally absorbing public deposits.
- February 9, 2026：
- A Beijing court announced the expansion of Zhongzhi Enterprise Group's bankruptcy liquidation to include 68 additional affiliated companies, bringing the total to 316 entities.
AI generated, for reference only
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新