Investing

China Shadow Bank’s Collapse Shows Wealth Wipeout Is Deepening

The Zhongrong International Trust offices in Beijing.Source: Bloomberg
Lock
This article is for subscribers only.

More than a year after one of China’s biggest trust companies collapsed, hopes for a recovery in the $3.7 trillion industry are quickly fading.

Zhongrong International Trust Co., which managed about $108 billion in 2022 before the government stepped in the following year after steep losses on real estate and other investments, was recently deemed insolvent by state-appointed custodians who submitted a winding-up proposal to regulators, Bloomberg reported this week.