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China’s financial authorities announced the takeover of nine financial institutions for one year from Friday, citing rule violations.
Four are insurers – Tian An Property Insurance, Huaxia Life Insurance, Tian An Life Insurance, and 1An.com – and two are trust firms – New Times Trust and New China Trust, the China Banking and Insurance Regulatory Commission (CBIRC) said on its website.
The CBIRC said the move is to protect the rights of policy holders and customers and serve the public’s interest.
The six companies can continue to operate as usual, while their debts to creditors and insurance policies will be unaffected, the commission said.
Their boards of directors will be replaced by the staff of six financial firms that were appointed as custodians, according to the statement.
Also announced Friday were the takeover of two securities firms and one futures brokerage for one year until July 16, 2021. New Times Securities, Guosheng Securities and Guosheng Futures were found to have concealed information about controllers and shareholder structures and were being mismanaged, the China Securities Regulatory Commission (CSRC) said.
The CSRC said the operations of the three companies will also remain normal during the takeover period.
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