Chinese shadow bank admits £30bn shortfall after ‘management ran wild’

Zhongzhi, a wealth manager with links to China’s ailing property market, says it is ‘severely insolvent’

One of China’s biggest financial conglomerates with links to the country’s ailing property market has admitted a shortfall of nearly £30bn as it warned investors that it is “severely insolvent”.

Zhongzhi, an asset and wealth management company in China’s shadow banking sector, said its total assets amounted to 200bn yuan (£22.5bn) against obligations of up to 460bn yuan, in a letter to shareholders issued on Wednesday.