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China probes insurance fund use in property sector to curb risk -report

SHANGHAI, Nov 25 (Reuters) – Chinese regulators have opened an investigation into the use of insurance funds in a bid to fight any unlawful use and to curb risk in the business, the state-backed Shanghai Securities News reported on Thursday.

It mentioned an earlier routine inspection had discovered some insurance establishments had severe compliance points.

Regulators will look into funding actions of insurers which was past the allowed funding scope, together with these invested into industrial actual estates tasks, and into unlisted property builders, the report mentioned, citing unnamed sources from insurance corporations.

It will even look into areas the place insurers helped to increase funds for property tasks irregularly, and even breached the fund elevating restrict, the report added.

Institutions now have to formulate rectification plans – together with holding accountable employees accountable for violations or lapses – deeply analyse the basis causes of issues, re-examine belongings and promote affordable capital replenishment, the newspaper mentioned.

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Reporting by Brenda Goh and Cheng Leng; Editing by Christopher Cushing and Grant McCool

People walk in the Central Business District (CBD) on a hazy morning in Beijing, China, October 25, 2021.   REUTERS/Thomas Peter

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