Zhongzhi Enterprise Group hired KPMG to review its balance sheet amid a worsening liquidity crunch. The banking regulator is also examining risks at the company.
whose liquidity crisis has fanned fears about financial contagion is planning to restructure its debt and has hired KPMG to conduct an audit of its balance sheet, people familiar with the matter said.
The Chinese firm did not respond to emails asking for comment, while calls to KPMG were not answered. One Zhongzhi-backed trust company, Zhongrong International Trust, has missed payments on dozens of products and has no immediate plan to make clients whole. Zhongrong has 270 high-yield products totalling 39.5 billion yuan due this year, according to data provider Use Trust.The crisis in the shadow banking system is worsening a sell-off in Chinese financial markets, which are already under pressure from disappointing economic data and the slumping property market.
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