Huaxia Life is taken over by the Chinese government for more than two years, and the regulatory agency is setting up a new insurance company to take over its business.This is the latest measure for the Chinese government to control financial risks.
The Bank of China Insurance reported on Saturday (February 25) that the China Banking and Insurance Regulatory Commission has approved the insurance guarantee fund company and other investors to build Ruizhong Life Insurance Company.The Insurance Security Fund is an industry institution dedicated to bailout the problem of insurance companies.
The report quoted a person in charge of a CBRC who said that the move marked the progress of the risk resolution of Huaxia Life.
Bloomberg reported that Huaxia Life Insurance and its former competitors Anbang Insurance Group was a radical buyer of other company equity, because short -term and high -yield products promoted income growth.
In 2018, according to market share, Huaxia Life is the fourth largest life insurance company in China.Subsequently, China ’s crackdown on high -risk products slowed its growth rate, and the epidemic further hit its business.
Since 2020, this closed -holding insurance company has been placed under the temporary control, partly because the company has contact with Xiao Jianhua's investment empire's tomorrow.In 2018, the People's Bank of China requested several financial holding companies Tomorrow Group and other financial holding companies to review its ownership structure, affiliated transactions and fund sources.
The measures taken by regulating Huaxia Life are similar to Anbang.The Chinese government took over the control of Anbang in early 2018, and later established the insurance group to take over most of its business and sell overseas assets.
The regulatory agency did not disclose the equity structure of the insurance company that plans to take over Huaxia Life.
