Chinese insurance mogul Wang Bin next to face corruption probe

0

Wang is chairman of China Life Insurance, a company listed in Shanghai, Hong Kong and New York.

Beijing:

The chairman of China’s largest insurer is under investigation by the Communist Party’s anti-corruption commission, the agency said on Saturday, as the government leads an anti-corruption campaign and an industry clean-up chaotic financial situation of the country.

Wang Bin is under investigation for “serious violations of discipline and the law,” the Central Commission for Discipline Inspection said in a brief statement, language generally indicating impending corruption charges.

Wang is chairman of China Life Insurance, a company listed in Shanghai, Hong Kong and New York.

The announcement gave no further details.

The Bloomberg financial news agency recently reported that China Life and other major insurers are grappling with the slowing Chinese economy and declining levels of new business, among other issues.

Their stocks were also affected by fears of their exposure to the struggling Chinese real estate sector.

In October, China Life recorded a 54% drop in third-quarter profits.

Chinese regulators have struggled for years to clean up massive debt and mismanagement in its corporate sector, a battle that has recently focused on real estate giant Evergrande Group.

Evergrande has been plunged into crisis over the past year after regulators curtailed real estate speculation and leverage, cutting off critical pathways to accessing liquidity.

He recently defaulted on his debt, raising fears of wider financial contagion, and major restructuring under the watchful eye of the government is expected.

More than a million officials have been punished in recent years as part of a massive anti-corruption campaign launched under President Xi Jinping.

Last year, China executed Lai Xiaomin, the former chairman of Huarong – one of China’s largest state-controlled asset management firms – who was accused of accepting $ 260 million. bribe dollars.

In September, Yuan Renguo, the former director of Keichow Moutai, the world’s most valuable spirits company, was sentenced to life in prison for accepting more than $ 17 million in bribes.

In 2020, the former head of China’s insurance regulator was sentenced to 11 years in prison, also for corruption.

(Except for the title, this story was not edited by NDTV staff and is posted from a syndicated feed.)

Share.

Comments are closed.