Adding a pinch of intrigue, Zhongrong remains tight-lipped about its financial hiccups, allowing stock exchange entries by publicly-listed entities to spill the beans.
Following the Money Trail
Tracing the currency streams from 2022 to 2023, Zhongrong’s pursuit of a staggering Rmb8.7bn ($1.2bn) from Sunac—a once-giant in China’s developer landscape—is revealed. Sunac’s financial health plummeted in 2022, leading to a murky offshore debt rearrangement by March. The waters remain muddy regarding Zhongrong’s potential settlements with Sunac.
Further unearthing financial tracks, Zhejiang Jihua, a textile chemical company, broadcasted Zhongrong’s delayed payouts linked to real estate ventures by China Fortune Land Development and Sunac. The latter, one of the nation’s premium developers, faced financial calamity shortly after a Rmb1.5bn bond from Zhongrong.
Further twists arise as Yango and Evergrande, both monumental developers, enter the fray. While the former repaid a hefty Rmb3.3bn after a project sale, the latter got ensnared in a lawsuit by Zhongrong over a contested Rmb1.9bn loan contract.
The Domino Effect and Beijing’s Worry
Zhongrong’s financial dance card isn’t restricted to developers. A government-backed entity from Xi’an city hit pause on a Rmb900m loan repayment, citing “land development” snags.
