Chinese shadow bank admits £30bn shortfall after ‘management ran wild’
by Amy Hawkins Senior China correspondent from World news | The Guardian on (#6GKNS)
Zhongzhi, a wealth manager with links to China's ailing property market, says it is severely insolvent'
One of China's biggest financial conglomerates with links to the country's ailing property market has admitted a shortfall of nearly 30bn as it warned investors that it is severely insolvent".
Zhongzhi, an asset and wealth management company in China's shadow banking sector, said its total assets amounted to 200bn yuan (22.5bn) against obligations of up to 460bn yuan, in a letter to shareholders issued on Wednesday.
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