Wealth firm probed over missed payments

China's banking regulator has set up a task force to examine risks at Zhongzhi Enterprise Group, one of the nation's top private wealth managers, after a unit missed payments on multiple high-yield investment products.

The National Financial Regulatory Administration established a working group last month to gauge the outstanding debt and risks at one of the main financing arms of Beijing-based Zhongzhi, which oversees more than 1 trillion yuan (HK$1.08 trillion) worth of assets, sources said.

The regulator required Zhongrong International Trust to report its plans for future payments and available assets that can be disposed of to deal with the liquidity crunch, said sources, as nearly half the funds raised by Zhongrong were funneled to its parent or affiliated units.

Zhongrong Trust alone has 270 products totaling 39.5 billion yuan due this year, according to data provider Use Trust.