The chairman of China’s biggest insurer is being investigated by the Communist Party’s anti-corruption commission, the agency disclosed on Saturday, as the government pushes a campaign against graft and a clean-up of the country’s chaotic financial industry.
The Central Commission for Discipline Inspection announced in a brief statement that hat Wang Bin is being probed for “severe violations of discipline and law,” a phrase that often suggests future graft charges.
China Life Insurance is listed in Shanghai, Hong Kong, and New York, is chaired by Wang.
There were no other specifics in the announcement.
The Bloomberg financial news agency recently stated that China Life and other large insurers were struggling with a slowing Chinese economy and dwindling new business, among other issues.
Their shares have also been hit by fears of their exposure to China’s crisis-hit property sector.
In October, China Life posted a 54 per cent drop in third-quarter profit.
Chinese regulators have struggled for years to clean up massive debt and mismanagement in its corporate sector, a battle that has focused lately on property giant Evergrande Group.
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Evergrande has been plunged into crisis over the past year after regulators curbed property speculation and leverage, cutting off crucial avenues for accessing cash.
It has recently defaulted on debt, causing fears of wider financial contagion, and a major restructuring under the government’s watchful eye is expected.
More than a million officials have been punished in recent years in a wide-ranging 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 firms — who was accused of taking $260 million worth of bribes.
In September Yuan Renguo, the former head of Keichow Moutai, the world’s most valuable spirits company, was jailed for life for taking more than $17 million in bribes.
In 2020, the former head of China’s insurance regulator was sentenced to 11 years in prison, also on charges of taking bribes.
