China Regulator Clears Zhongrong Trust for Bankruptcy in Shadow Banking Cleanup
The Heilongjiang branch of China's financial regulator approved the trust firm's bankruptcy liquidation, months after its parent Zhongzhi and over 300 affiliates were ordered to liquidate.
BEIJING, July 3 (Reuters) - The Heilongjiang branch of China's national financial regulator has approved Zhongrong International Trust to enter bankruptcy, according to a notice dated April 13 released on Friday.
• The approval followed the company's request to begin bankruptcy liquidation, the notice showed.
• The company's parent, Zhongzhi Enterprise, and more than 300 affiliated entities were ordered to liquidate in April.
• The April liquidation order marked a major step towards resolving one of China's biggest shadow banking collapses and managing systemic financial risks.
• A former chairman of Zhongzhi Enterprise Group and several others were sentenced by a court in Beijing to prison terms ranging from 4-1/2 to 14 years for illegally taking public deposits, state media reported last year.
(Reporting by Xiuhao Chen and Ryan Woo. Editing by Mark Potter)
