Entities linked to Chinese conglomerate Zhongzhi have failed to make payments, multiple investors have said, sparking concern over the country’s wealth management industry and its exposure to a troubled property market, reports the Financial Times. Beijing-based Zhongzhi, which was founded in 1995, has grown into a sprawling private enterprise with stakes in everything from financial businesses and a “unicorn incubator” to mining groups. Investments are estimated to total at least RMB 1 trillion ($140 billion).
It also holds a “strategic stake” in Zhongrong International Trust, which last week failed to repay the proceeds of two products, according to weekend stock market disclosures. KBC Corporation, which is part of the semiconductor supply chain, and Nacity Property Service Group said they had not received RMB 60 million and RMB 30 million, respectively.
The disclosures come at a time of widespread speculation across China about the health of the company and its exposure to a property cash crunch that has derailed the real estate sector and dragged on economic growth.
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