Dear readers,
Hi everyone, I am the hero of this article, let me tell you a confusing story, a legend from prosperity to crisis - Zhongzhi Enterprise Group.
It all started with Zhongzhi issuing a letter of apology. On November 22, this giant, which swept the business sea and had total assets of up to 200 billion yuan, suddenly became the focus of heated discussions in the society. Oh, by the way, I would like to introduce the behind-the-scenes hero of Zhongzhi - Xie Zhikun, the former music superstar, the founder of Zhongzhi, and my husband.
Starting from the 90s of the last century, Xie Zhikun was a member of the government.
But he resolutely resigned from his position, turned to the printing industry, and accumulated his first pot of gold by reselling red pine. In 1995, Zhongzhi was born.
The development process of Zhongzhi can be described as magnificent. After the shareholding system reform, Zhongzhi has become the substantive controller, and the flexible operation of Zhongrong Trust has laid the foundation for its successful transformation into a central enterprise. Of course, the capital operation of Zhongrong Trust and Zhongzhi is a complex story, involving mergers and acquisitions of listed companies.
But things were not all smooth sailing, and 2015 became a turning point for Zhongzhi. Xie announced that he would step down as chairman of the board of directors of Zhongzhi, and even had something to do with the resignation of Central Huijin.
The new regulations on asset management and changes in the financial market have also led to the failure of the planting strategy.
Then, the planting department was deeply engaged in the financial field. Wealth companies have emerged, and more than 50 listed companies have been deployed. However, regulatory changes have brought unprecedented difficulties to Zhongzhi wealth companies.
In 2019, Xie returned to China and proposed a new strategy of "two-wheel drive of entity and asset management". He frequently participates in press conferences and actively cooperates with local governments to lay a solid foundation for the new development of Zhongzhi.
However, the good times were short-lived. The introduction of the new regulations on asset management has made it difficult for non-standard private equity funds to register, and the products filed by Zhongzhi in the local financial exchange are also in jeopardy.
The death of Xie Zhikun is even worse, and the wealth company of the planting system is facing a clean-up and rectification.
Just when everything seemed to be no longer bad, the crisis of the plant system broke out. The real estate trust problem and the default of many products of Zhongrong Trust have led to the involvement of huge bond interests. In August 2023, the payment of wealth management products of Zhongzhi companies will be stopped, involving 230 billion bond interests, and 150,000 high-net-worth investors are in danger.
From the infinite scenery to the thunderstorm, the end of the Zhongzhi era is just around the corner. The problems of wealth companies and real estate trusts became the trigger for the crisis, and the death of Xie Zhikun was inexorably mired in trouble.
This story teaches us that financial markets are unpredictable, and that the consequences of over-expansion are no joke. Perhaps this is a portrayal of modern business, and it is also a lesson that each of us should take as a warning.
Looking to the future, although the story of the Chinese plant system has come to an end, will similar stories continue to play out? Perhaps this is just the tip of the iceberg of financial market risks, and we need to be vigilant and cautious at all times.
In general, the rise and fall of Zhongzhi Enterprise Group is a legend full of twists and turns. I hope that we can stay calm and not be carried away by the prosperity on the road of chasing our dreams.