(Adds Chinese central bank comments)
By Jason Xue and Clare Jim
SHANGHAI/HONG KONG, Aug 17 (Reuters) – A major Chinese asset manager has told its investors it needs to restructure its debt, stoking fears that a chain of defaults could spread through the financial sector and deliver a destabilising shock to the country’s weakened economy.
Zhongzhi Enterprise Group, which raises money from companies and the wider public and is reported to manage 1 trillion yuan ($137 billion) in assets, spoke of the restructuring in an investor meeting on Wednesday, a video seen by Reuters showed.
The Beijing-based firm, which has sizeable exposure to the country’s cash-squeezed real estate sector, has already stopped payment to investors in all investm…
Read the full article at: https://finance.yahoo.com/news/wrapup-1-chinese-asset-manager-065435134.html