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Chinese insurance mogul Wang Bin next to face corruption probe

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 campaigns against corruption and clean up the industry chaotic financial situation of the country.

Wang Bin is under investigation for “serious disciplinary and legal violations,” 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 a decelerating 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 a slump over the past year after regulators curtailed real estate speculation and leverage, cutting 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 in a sweeping 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 companies – who was accused of accepting $ 260 million. bribe dollars.

In September, Yuan Renguo, the former boss of Keichow Moutai, the world’s most valuable spirits company, was jailed for life 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.)

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