THE country’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., a unit of China Reinsurance Group Corp., New China Life Insurance Co. and Ping An Life Insurance Co. violated regulations on investable countries and regions, the China Insurance Regulatory Commission said in three latest notices. 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 three insurers named must report on steps taken to correct the breaches within one month from receiving the orders, according to the statements. The move on Anbang signals the country’s determination to enforce regulations to support long-term growth rather than undisciplined rapid expansion, said Bloomberg Industry Analyst Steven Lam. Under founder Wu Xiaohui, Anbang came to epitomize the 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 authorities, alarmed by mounting financial risks, slammed the brakes on Anbang and peers such as HNA Group. The Anbang takeover is taken to maintain normal operations at the company and protect consumers’ rights, the China Insurance Regulatory Commission said. Public prosecutors recently filed a lawsuit against Wu in the Shanghai Municipal No. 1 Intermediate People’s Court, accusing him of fundraising fraud and embezzlement by taking advantage of his post.(SD-Agencies)
The China Insurance Regulatory Commission has given three domestic firms one month to correct violations of the country's foreign investment regulations. Ping An Life Insurance, New China Life Insurance and China Reinsurance Group, a unit of China Re Asset Management, were notified in a statement they had breached rules on investable countries and regions. Further details of the violations were not made available. The move follows the Chinese state's takeover of beleaguered Anbang Insurance Group, which has been billed as part of a bid to focus on driving long-term growth over financial risk.