The self-declared severely insolvent status of one of Chinas largest shadow banks has revealed another crack in a financial system stressed by abrupt and disruptive shifts in the countrys economic growth model and trajectory.
Last week, Zhongzhi Enterprise Group warned investors it would be unable to repay them, saying it had conducted a due diligence exercise that showed it was severely insolvent and facing high risks of sustaining normal operations.
Chinese President Xi Jinping. Beijing has little choice but to intervene, given the property sectors crucial role in the economy.Credit: AP
In the …
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