A major wealth management company in China has told investors it can’t pay all its bills, reigniting fears that the country’s long-running real estate slump may be spilling over into the US$3 trillion ($4.58 trillion) shadow banking sector.
Zhongzhi Enterprise Group (ZEG) wrote to investors this week, disclosing that it was “severely insolvent,” according to a report in Chinese state-owned news outlet lanjinger.com, citing a letter from the shadow bank, which it also published.
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