An apology letter from one of China's largest shadow banks is giving a worrying sign that the country's long-running real estate crisis could now spread to its financial system.
Zhongzhi Enterprise Group reportedly warned investors that it may be unable to pay its debts and calculated its total liabilities to be around 420 billion to 460 billion yuan ($59-65 billion). The Beijing-based financial institution has sizeable exposure to China's real estate developers, and so its stumbles are reigniting fears of contagion from the country's property sector troubles.
