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, China Life Insurance and Ping An Insurance (Group) violated regulations on investable countries and regions, the China Insurance Regulatory Commission said in three separate notices posted on its website on Saturday dated February 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.