China Sets Up Task Force After Top Wealth Manager Misses Payment
- NFRA to examine potential debt, risks of Zhongzhi’s trust arm
- China’s $2.9 trillion trust sector saw heavy property losses
The central business district in Beijing, China.
Photographer: VCG/Visual China Group/Getty Images
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China’s banking regulator has set up a task force to examine risks at Zhongzhi Enterprise Group Co., one of the nation’s top private wealth managers, after a unit missed payments on multiple high-yield investment products.
The National Financial Regulatory Administration established a working group last month to gauge the outstanding debt and risks at one of the main financing arms of Beijing-based Zhongzhi, which oversees more than 1 trillion yuan ($138 billion) of assets, according to people familiar with the matter, who asked not to be identified discussing a private matter.