Angry protests erupted in China as investors demand their money back after a major Chinese asset manager from Zhongzhi enterprise missed payments on its debt, stoking fears of default. The news comes as the country’s property sector flounders.
The group reportedly manages $1 trillion yuan in assets, or around $137 billion. It’s already stopped paying investors amid the fallout of China’s struggling real estate sector.
Investors are seen facing off with police as they demand their money back.
A subsidiary Zhongrong manages more than $90 billion of assets, a large portion of that tied to the real estate sector.
Its missed payments had added to stress in the financial sector from the country’s worsening property crisis.
Anxious Chinese investors are worried about contagion across the country’s financial system.
They’re asking dozens of other listed companies whether they were exposed to the trust company.
This is the latest in a slew of financial woes plaguing China as authorities attempt to contain a worsening property sector crisis.
That’s as fears spread that China’s deepening property sector crisis is spilling over into the financial industry worth trillions.