China takes full ownership of Anbang

The Chinese government has taken full ownership of troubled Anbang Insurance Group, according to a Wall Street Journal report citing a June 22 statement by the regulator.

According to the statement, the China Banking and Insurance Regulatory Commission has approved the transfer of 98.23 percent of Anbang to China Insurance Security Fund.

The fund had already injected ¥60.804 billion ($9.65 billion) of capital into the company while seeking new investors for the group.

In February 2018, the Chinese government seized control of Anbang in an attempt to curtail big-spending conglomerates as it cracks down on financial risk.

Anbang had violated laws and regulations which “may seriously endanger the solvency of the company”, the China Insurance Regulatory Commission (CIRC) had said in a statement announcing the seizure.

In May 2018, Wu Xiaohui, the former chairman of Anbang Insurance Group, has appealed his conviction for fraud and embezzlement.

Wu has been found guilty of fraud and embezzlement and sentenced to 18 years in prison earlier in May. The Shanghai No.1 Intermediate People’s Court saw Wu guilty of issuing false disclosures to regulators and diverting insurance premiums for his personal use. The court also confiscated 10.5 billion yuan ($1.65 billion) in assets.

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