China’s insurance regulator has issued its 37th regulatory letter for the year, penalising an insurer for improper trading in equities.
The China Insurance Regulatory Commission (
CIRC) has revoked Kunlun Health Insurance’s application to change shareholders and registered capital, marking the first time the regulator has acted against illegal equities.
The CIRC’s tally of 37 regulatory letters in 2017 has exceeded the total number it issued in the previous three years, reported Asia Times. According to experts, this shows the regulator’s determination to catch and penalise erring insurers, continuing the industry-wide crackdown it initiated last year. A shift in tone was also noticed, with the regulator’s previous flexible guidance strategy giving way to a more hard-line approach.
He Xiaofeng, director of the reform and development department of the CIRC, revealed that there are nine more insurance companies that were found to have engaged in illegal equity trading, and that the regulator is gearing to take action against them.
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