SHANGHAI, Feb 25 (Reuters) - China’s insurance industry regulator said on Saturday that it would restrict Evergrande Life’s stock trading activities for one year after accusing the insurance subsidiary of conglomerate China Evergrande Group of having engaged in irregular investment activities.
The China Insurance Regulatory Commission (CIRC) said in a statement on its website that it would restrict the insurer’s share trading and ban two senior officials at the firm from the industry for between three and five years.
Beijing is prosecuting a sector-wide crackdown on what the CIRC says are risky activities by some aggressive insurers, particularly those that engage in stock market speculation.
In a separate case on Friday the regulator said that it had banned Yao Zhenhua, chairman of rival Foresea Life, from the insurance business for 10 years, accusing him of breaching regulations in its use of insurance funds.
The CIRC said inspection teams sent into Evergrande Life in December had identified a number of issues, including irregular stock investment activity and weak internal controls.
Reuters could not immediately reach Evergrande Life outside regular business hours.
In recent months CIRC has repeatedly vowed to crack down on some “barbaric” insurance players to prevent the sector becoming a “club of the rich” or a “hideout for financial titans”.
In Decmber last year the CIRC had already suspended Evergrande Life from making equity investments for engaging in speculative and frequent high-volume trading. (Reporting by Adam Jourdan; Editing by Greg Mahlich)