Asset Management

Chinese company that sparked fears of financial contagion falls into bankruptcy

A key subsidiary of Zhongzhi had missed multiple debt payments

Plight of Chinese shadow bank had sparked contagion fears
Plight of Chinese shadow bank had sparked contagion fears Photo: Bloomberg via Getty Images

China’s Zhongzhi Enterprise Group has declared bankruptcy, following a calamitous year in which it sparked fears that the world’s second-largest economy was facing a “Lehman moment”.

A Beijing court accepted Zhongzhi’s bankruptcy and liquidation proposal on 5 January, cementing one of China’s biggest corporate failures in recent history.

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