Chinese wealth manager Zhongzhi Enterprise Group has filed for bankruptcy liquidation after failing to repay debt, as the firm grapples with a deepening property market downturn, reports Reuters. Zhongzhi applied for bankruptcy on the grounds it could not pay its due debts and its assets were insufficient to pay all its debts, a court in China’s capital Beijing said in a statement on Friday.
The court said it accepted Zhongzhi’s bankruptcy liquidation application in accordance with China’s enterprise bankruptcy law.
The worsening woes at Zhongzhi, a major player in China’s $3 trillion shadow banking sector—roughly the size of the French economy—add to worries that the country’s property debt crisis is spilling over into the broader financial sector.