KEY POINTS
  • China's shadow banking conglomerate Zhongzhi Enterprise Group filed for bankruptcy liquidation late on Friday.
  • The broader CSI 300 index fell by early afternoon trading, weighed down by property stocks.
  • There could be more trust loan defaults as most investments are local government financing vehicles and real estate debt, analyst warns.
HANGZHOU, CHINA - NOVEMBER 15, 2023 - An aerial photo shows a new property under construction in Hangzhou City, Zhejiang Province, China, Nov 15, 2023.

Zhongzhi Enterprise Group filed for bankruptcy liquidation late Friday, as the Chinese shadow banking conglomerate is unable to repay its debt amid a deepening real estate crisis in the country.

The company has filed for bankruptcy on the grounds that it is "clearlylacking the ability to repay debt and has insufficient assets to pay off its dues, according to a WeChat statement issued by Beijing's First Intermediate People's Court.