Reported 29 days ago
Zhongzhi Enterprise Group, a prominent player in China's shadow banking sector, declared insolvency last year after it was found to have engaged in aggressive and potentially illegal sales practices. The company's strategy involved using funds from new investors to pay returns to existing investors, all while hiding its financial troubles amidst a deepening property crisis. Experts noted that such actions likely violated regulatory guidelines, and the fallout has resulted in significant financial losses for its investors.
Source: YAHOO