In 2023, the former largest fund management company in China, “Zhongzhi Group,” officially applied for bankruptcy liquidation, leaving behind a huge debt of over 200 billion RMB. This not only left countless investors empty-handed but also put the masterminds and related individuals in the spotlight. Among them, Maomi, the wife of Zhongzhi Group’s former controlling shareholder Jie Zhikun and a well-known singer, was reported to have returned more than 4 million RMB and sold her Land Rover to refund the funds, becoming one of the focal points of this storm.
Recently, a leaked “meeting minutes” circulating on the internet and more internal details disclosed by financial media have revealed the latest developments in this financial case.
According to the leaked “meeting minutes,” investors in Zhongzhi’s fixed-income products and relevant department personnel held a meeting in Shenyang.
Trust media “Trust Insider” recently reported that on August 26, relevant department personnel in Shenyang received investors in Zhongzhi’s fixed-income products and held a meeting with over thirty investor representatives, conveying a vast amount of information.
Participants included Qin Muchen (member of the Zhongzhi Project Team in Chaoyang, Beijing), Gao (from a certain squadron in Chaoyang, Beijing), Cao Lun (from a certain general team in Beijing), and over thirty representatives of Zhongzhi’s victims.
The “meeting minutes” revealed that, from a criminal investigation perspective, Maomi did not participate in the decision-making of Zhongzhi’s fixed-income products. The house she resides in was purchased in 2007 with non-case-related funds. After 2017, she withdrew over 4 million for living expenses and a Land Rover from Zhongzhi’s fund pool, of which the 4 million has been returned, and the Land Rover has been sold with the funds refunded.
The report by “Trust Insider” provided more details. Qin Muchen mentioned that in the progress and related circumstances of the Zhongzhi case, there are over 60,000 registered victims in the Zhongzhi system, 80%-90% of whom have reported their cases online or to the police offline, and future compensation will be distributed among the reporting population. The standing fees of other involved celebrities and economists are also being smoothly recovered.
According to the official website of Zhongzhi Group, the company was founded in 1995 and underwent a transformation into a joint-stock company in 1999, establishing Zhongzhi Enterprise Group Co., Ltd. Since 2001, Zhongzhi has been expanding into the financial industry, focusing on investing in infrastructure construction and continuing its real estate development business. Trust business development began in 2002.
Zhongzhi claims to be the largest private financial conglomerate in China, with assets once exceeding “tens of billions,” reaching over 150,000 high net worth investors, involving an amount of approximately 230 billion.
Zhongzhi’s capital operations typically involve low-priced equity participation or control of target companies, followed by promoting equity offerings of listed companies for high-priced acquisitions of these targets to profit from equity premiums. At its peak, Zhongzhi held or invested in over twenty listed companies with countless operations.
Jie Zhikun, the former controlling shareholder of Zhongzhi, married singer Maomi in 2003. In December 2021, Jie Zhikun passed away suddenly due to a heart attack. His sudden death raised suspicions, and the issue of Maomi’s inheritance rights also drew attention from various circles.
After Jie Zhikun’s death, Zhongzhi Group was reported to be facing a liquidity crisis.
In June 2023, several financial products under Zhongzhi Enterprise Group began to show signs of “suspension of fixed-income product payments,” considered a precursor to the “Zhongzhi bankruptcy.”
On November 22, 2023, Zhongzhi released an open letter to investors, revealing assets of approximately 200 billion yuan but debts and interest totaling 420-460 billion yuan, officially admitting insolvency and declaring an inability to repay.
According to mainland media reports, Zhongzhi Group’s failure may have been triggered by its real estate involvement. With the backdrop of the Chinese authorities gradually adjusting real estate policies, the real estate industry faced limitations on bank loans, while companies like “Zhongzhi System’s” Zhongrong Trust became a new financial channel for the real estate sector.
Data shows that the proportion of Zhongrong Trust’s real estate business has been steadily increasing. From 2017 to 2020, the proportion of trust assets invested in real estate was 6.61%, 10.99%, 17.65%, and 18%, respectively. It is reported that Evergrande, Huaxia Happiness, Jiazhaoye, Sunac, Greenland, Blue Sky Real Estate, Tahoe, and Shimao have cooperated with Zhongrong Trust.