Liquidity Crunch Darkens China Conglomerate Suning’s Future (1)

Early signs of a liquidity crisis for parts of Suning Holdings Group Co. has left founder Zhang Jindong’s empire facing a potential existential threat.

Signs of tightness this week include a deal with a financier for those in need of immediate cash and the conglomerate’s appliance arm receiving a last-minute extension from bondholders of a $448 million local note. Suning’s operations range from retail in China to ownership of Italian soccer club Inter Milan.

Trouble at Suning could mean further bad news for China Evergrande Group, one of the country’s most systemically important borrowers and the world’s most indebted ...