BEIJING—The Chinese regime has officially seized control of Anbang Insurance Group Co. Ltd. and prosecuted the company’s chairman, dramatically illustrating Beijing’s willingness to curtail big-spending private firms as it cracks down on financial risk.
Insurance giant Anbang had violated laws and regulations which “may seriously endanger the solvency of the company,” the China Insurance Regulatory Commission (CIRC) said in a statement announcing the seizure on Feb. 23, without providing additional details.
The CIRC also said Anbang’s chairman and key shareholder, Wu Xiaohui, has been prosecuted for economic crimes. Wu was arrested in June 2017 as troubles mounted for one of China’s most aggressive buyers of overseas assets.
The Shanghai prosecutors office said in a statement on Feb. 23 that Wu had recently been charged with fundraising fraud and abuse of his position, and that his case had been forwarded to the city’s intermediate court for prosecution.
