A Beijing court has ordered the liquidation of Zhongzhi Enterprise Group Co. and
more than 300 affiliated companies, according to a court notice, marking a key
step in dismantling one of China’s largest shadow banking conglomerates. The
Beijing No. 1 Intermediate People’s Court said it accepted the case on Friday,
with creditors required to submit claims by June 10 to administrator Beijing
Dacheng Law Offices LLP. Zhongzhi filed for bankruptcy in 2024 after defaulting
on multiple investment products in 2023 and declaring severe insolvency,
prompting criminal investigations and the jailing of its former chairman. Its
trust arm Zhongrong International Trust was also placed into liquidation last
year. The case highlights regulatory efforts to unwind complex shadow banking
structures tied to inter-company guarantees amid broader financial risk
containment and follows wider stress across China’s trust sector, which has been
hit by the property downturn and deleveraging drive.
