FINANCE

China Orders Bankruptcy Liquidation of Shadow Banking Giant Zhongzhi

Published: Apr. 13, 2026 2:55 p.m. GMT+8

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A Beijing court has ordered the consolidated bankruptcy liquidation of Zhongzhi Enterprise Group and more than 300 affiliated companies, marking a major step toward dismantling one of China’s largest shadow banking empires.

The court said Friday that creditors must file claims online by June 10, as it moves to unwind a sprawling network whose collapse left a funding gap of up to 260 billion yuan ($38 billion).

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Beijing court orders bankruptcy liquidation of Zhongzhi Enterprise Group and 300+ affiliates, with 260B yuan ($38B) funding gap.
Creditors must file claims by June 10; Beijing Dacheng Law Offices appointed administrator.
Follows criminal sentences up to 14 years for ex-executives; underscores shadow banking risks.

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Who’s Who

Zhongzhi Enterprise Group: A Beijing court ordered consolidated bankruptcy liquidation of Zhongzhi Enterprise Group and 300+ affiliates, tackling a 260 billion yuan ($38 billion) funding gap. Creditors file claims by June 10; Beijing Dacheng Law Offices appointed administrator. Founded in 1995, the shadow banking giant collapsed amid regulations; executives jailed up to 14 years for illegal deposits.

Beijing Dacheng Law Offices LLP: Beijing Dacheng Law Offices LLP has been appointed administrator for the consolidated bankruptcy liquidation of Zhongzhi Enterprise Group and over 300 affiliates by a Beijing court, which dismissed conflict-of-interest objections linked to its prior work for some entities.

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