China wealth manager Zhongzhi faces $37bn asset shortfall

Group admits it is severely insolvent amid economic headwinds

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Zhongzhi Enterprise Group holds stakes in several key Chinese financial institutions, including Zhongrong International Trust. © Reuters

NORIYUKI DOI, Nikkei staff writer

SHANGHAI -- Chinese wealth manager Zhongzhi Enterprise Group has told investors that it is severely insolvent with a financial shortfall of up to 260 billion yuan ($36.7 billion), as an economic slowdown and property slump cast shadows over the country's financial sector.

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