# Insolvency

China's Corporate Chasm: The Great Divide Between Cash Giants and Insolvent Zombies

First-quarter 2026 data for China's A-share market shows 36 companies are insolvent while industry leaders like CATL and China State Construction hold record cash reserves. The report highlights a growing divide between distressed 'zombie' firms and cash-rich giants, set against a backdrop of real estate sector cooling and a transition toward a high-tech 'New Economy'.