Sangkshi Enterprise Group , a Chinese conglomerate, has filed for bankruptcy with debts of Rs 5.31 lakh crore. The company is one of China's largest private conglomerates, with interests in a wide range of industries, including real estate, mining, and finance.
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Which Chinese companies gone bankrupt
The bankruptcy is the latest in a series of high-profile corporate
failures in China, and it is likely to have a significant impact on the
country's economy.
The group's foundation, 'Chang Rong International Trust', was founded in 2022.
As of closing, it was managing funds worth nearly Rs 7.22 lakh crore.
In this case, it said that it has failed to pay its dues to its corporate investors for the month of August.
Currently in this state. The group has told investors that it is insolvent with a debt of Rs 5.33 lakh crore.
The bankruptcy of Sangshi Enterprise Group is a major setback for the Chinese government, which has been trying to promote economic growth and stability. The company's collapse is also likely to have a ripple effect on other Chinese companies, as they may struggle to obtain credit and financing. The bankruptcy could also lead to job losses and social unrest.
Also, since the group's assets are concentrated in debt and equity investments, which have a long duration, it is difficult to redeem them, the group said.
The bankruptcy of Sangshi Enterprise Group is a reminder of the risks associated with China's rapid economic growth. The company's expansion was fueled by cheap credit and a booming economy, but it also took on too much debt and made risky investments. As a result, the company was unable to weather the recent economic downturn.
The bankruptcy of Sangshi Enterprise Group is a wake-up call for the Chinese government and businesses. The government needs to take steps to regulate the financial sector and prevent excessive risk-taking. Businesses need to be more cautious in their investments and avoid taking on too much debt.
China's economy and real estate sector are already suffering from the crisis, now with this news, the foundation Or the 'shadow banking' segment is also troubled.