One Of China’s Biggest Financial Giants Collapses

November 27, 2023 12:34 pm Comments

One of China’s biggest financial giants has just announced that it is officially insolvent.

The Zhongzhi Enterprise Group made the announcement last Wednesday. Zhongzhi is a collection of financial entities across China’s economy that includes traditional finance, borrowing & lending, and commercial real estate.

It’s no secret that China’s commercial real estate sector has been struggling for some time now, as the Chinese economy overextends various building projects with ruthless efficiency. There are literally ghost cities in China, featuring entirely new construction, that are uninhabited.

Fears of a Chinese collapse and the implications for the broader global economy seem to be growing as it becomes obvious that the world’s major powers are playing with fire and are very close to experiencing another 2008-style financial collapse.

How this will affect the crypto markets if at all, remains to be seen. One thing is for certain though: the traditional, centralized financial system is wrought with issues and counter-party risk. Only through building completely decentralized systems will we avoid constant, cyclical economic collapse. Here’s more on the story:

CNN Business reports:

The group is one of China’s largest private conglomerates with operations in financial services, mining and electric vehicles. Concern about its finances were first triggered in August when a trust it partially owns said it had missed payments to corporate investors.

Zhongrong International Trust, which managed $87 billion worth of funds for corporate clients and wealthy individuals as of the end of 2022, is one of thousands of wealth management firms in China that offer relatively high levels of return to investors.

Ryan Cunningham drew attention to a broader global collapse and asked: “Major Banks across the world are having massive liquidity problems. UBS Bank. Rolling ACH outages/ issues Chinas Zhongzhi Bank. Here is a hint. UBS is tied to the deep state and Rothschild. Are about to see a major collapse?”

Trustnodes explained:

Hard assets tend to do well in this situation when you don’t know whether the deposits in your bank can really be trusted as, although China does issue its own currency, that’s just another way of ‘taking’ your assets through inflating debt away. Maybe for a whole decade, if it does enter stagnation or worse.

In crypto there have been some signs of interest from that region, but all this does still look like it’s at the early stages.

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