Zhongzhi Executives Sentenced in Financial Scandal

A Beijing court sentenced former Zhongzhi Enterprise Group executives, including Gao, to prison for illegally taking public deposits. They breached financial laws, impacting China's property market. Gao and others received sentences between 4.5 and 14 years. The firm filed for bankruptcy in 2024 amidst a real estate downturn.

A Beijing court has sentenced several former executives of Zhongzhi Enterprise Group, including its ex-chairman identified as Gao, to prison terms ranging from four-and-a-half to 14 years. The court found them guilty of illegally taking public deposits, a violation of China's financial management laws, and causing significant disruption to the financial order, as reported by CCTV.

The executives were also fined, though the specific amounts were not disclosed. Zhongzhi, a wealth management firm heavily invested in China's property sector, filed for bankruptcy in January 2024 amid a broader downturn in the real estate market.

Efforts are ongoing by the police to recover the funds involved in the illegal activities. Zhongzhi has yet to comment on the matter, according to a statement from Reuters. The case underscores the financial challenges faced by firms in the beleaguered property sector.

(With inputs from agencies.)