Beijing police have launched an investigation into Zhongzhi Enterprise Group – Kommersant
[ad_1]
Beijing police have launched an investigation into possible violations of the law at one of China’s largest investment companies, which could be the reason for its multibillion-dollar debts and its declared insolvency a few days ago. The agency reports this Nikkei with reference to a publication by the Beijing Public Security Department on the WeChat social network.
The department’s message does not specify what possible violations of the law there may be, it only says that “coercive measures” have been taken against Zhongzhi Enterprise Group. As Nikkei notes, “coercive measures” can mean either placing individuals under surveillance or detaining or arresting them. At the same time, the department called on investors to share information about their connections with Zhongzhi Enterprise Group with law enforcement agencies.
At the end of last week, Zhongzhi Enterprise Group in a letter to investors reported about its insolvency, revealed by an independent audit to have a shortfall of $36.5 billion and debts that may exceed $64 billion. Since its operation, Zhongzhi Enterprise Group, founded in 1995, has repeatedly been in the spotlight due to its aggressive expansion policies and high-risk investments . The business situation of Zhongzhi Enterprise Group began to deteriorate in 2019 amid tightening government regulation of the financial sector. The problems have been exacerbated by the protracted real estate market crisis, which has led to the collapse of several large Chinese developers. In June 2023, several units of Zhongzhi Enterprise Group failed to pay investors.
[ad_2]
Source link