Flies and Tigers | 抓蝇打虎
Insurance regulator chief under graft investigation
Print Edition
THE head of China’s insurance regulator is being investigated for suspected disciplinary violations, the country’s top anti-graft body said yesterday, making him the most senior financial regulator to date to be caught up in the government’s fight against corruption.
In a brief statement, the Central Commission for Discipline Inspection said that Xiang Junbo, head of the China Insurance Regulatory Commission and a member of the central bank’s monetary policy committee, was suspected of “serious disciplinary violations” — a phrase that usually refers to corruption.
It gave no further details.
China’s insurance assets nearly doubled over the past three years, reaching 15.1 trillion yuan (US$2.19 trillion) at the end of 2016.
The regulator has intensified a crackdown on risky activity by some aggressive players in the insurance sector, particularly those seen to be engaging in financial market speculation using expensive short-term funds.
Various Chinese regulatory agencies have trained their sights on the insurance industry, complaining about companies’ use of their financial holdings to fund risky acquisitions in real estate and unlisted equities.
Yesterday’s announcement came after the chairman of the China Securities Regulatory Commission singled out the industry as a home for “barbarians” and “thieves” who engaged in debt-fueled stock market acquisitions.
In February, the government announced investigations into several major insurance companies, including Evergrande Life and Foresea Life, over allegations of market manipulation.
The president of PICC, the country’s first non-life insurance company, is also currently being investigated for corruption.
Xiang took control of the insurance regulator in 2011 after serving as chairman of Agricultural Bank of China Ltd, one of the four biggest state banks.
Xiang is the most senior regulator hauled in during China’s anti-graft campaign since Yao Gang, a former deputy head of the China Securities Regulatory Commission, was placed under investigation in late 2015 following a stock market crash.
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