Weekend Long Read: How Zhongzhi Became the Latest Chinese Financial Holding Group to Fall

the conglomerate held a reputation as one of the premier private financial holding groups in China, but its problems escalated quickly after the sudden death of its founder, Xie Zhikun, in late 2021

The financial sector has been rocked by the news that four major Chinese wealth management firms under the umbrella of Zhongzhi Group (中植集团) have defaulted on their fixed-income products. The sheer volume of money involved and the number of related parties have led to an ongoing buzz in the Chinese market, while drawing much scrutiny from regulatory bodies toward the firm.

Headquartered in Beijing, the business empire built by Zhongzhi Group and its subsidiaries covers finance, investment, wealth management, PE funds and trust companies, with nearly a trillion yuan in assets under management.