Three Chinese Insurers Found to Have Violated Investment Rules


China’s insurance regulator found three domestic insurers violated foreign investment rules, giving the companies a month to “correct” the breaches.

China Re Asset Management Co., China Life Insurance Co. and Ping An Insurance (Group) Co. violated regulations on investable countries and regions, the China Insurance Regulatory Commission said in three separate notices posted on its website on Saturday dated Feb. 11. The statements didn’t give details on the breaches.

The notices follow China’s temporary takeover of debt-laden Anbang Insurance Group Co. on Friday and a series of clampdowns on acquisitive tycoons. The Anbang seizure was announced days before the ruling Communist Party was expected to meet behind closed doors to approve personnel appointments and government restructuring decisions.

The three insurers named on Saturday must report on steps taken to correct the breaches within one month from receiving the orders, according to the statements.

The move on Anbang furthered President Xi Jinping’s anti-corruption and de-leveraging campaigns. The takeover signals the country’s determination to enforce regulations to support long-term growth rather than undisciplined rapid expansion, said Bloomberg Industry Analyst Steven Lam.

Click here for more on the Anbang seizure and what it means

Under founder Wu Xiaohui, Anbang came to epitomize the voracious Chinese appetite for overseas acquisitions that saw trophy assets snapped up around the world. The full cost of that headlong spree started becoming clear last year as Chinese authorities, alarmed by mounting financial risks, slammed the brakes on Anbang and peers such as HNA Group.

    Read more: https://www.bloomberg.com/news/articles/2018-02-24/three-chinese-insurers-found-to-have-violated-investment-rules