China: Corporate debt crisis spreads/Zhongwang: suspended in stock market & fraud conviction in U.S.
Published at : November 03, 2021
China Zhongwang Holdings Limited is known as the "King of Aluminum in Asia.” On October 15th, China Zhongwang suddenly announced its subsidiaries "had suffered significant losses and operational difficulties. Despite efforts from various parties, they are unable to solve the current problems on their own." The two subsidiaries mentioned are the primary companies of the corporate business.
The debt crisis of Chinese companies is spreading, which can bring about a serious financial crisis in China. For example, China's big business conglomerate, Baoneng Group, has experienced increasing strain on its capital chain. Currently, it has defaulted on at least nine items of trusts, involving a total of about $3.1 billion US dollars. Moreover, it has seen a rising risk factor for its subsidiaries, with frequent news about equity pledges, property freezes, and legal proceedings.
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The debt crisis of Chinese companies is spreading, which can bring about a serious financial crisis in China. For example, China's big business conglomerate, Baoneng Group, has experienced increasing strain on its capital chain. Currently, it has defaulted on at least nine items of trusts, involving a total of about $3.1 billion US dollars. Moreover, it has seen a rising risk factor for its subsidiaries, with frequent news about equity pledges, property freezes, and legal proceedings.
Have questions? Do you have something to share with us about China? We want to hear from you!
Email: Cinsights.subscription@gmail.com
Facebook www.facebook.com/EyesOnChina.
Copyright @ China Insights 2021. Any illegal reproduction of this content in any form will result in immediate action against the person(s) concerned.
ChinaBeijingXi Jingping