SHANGHAI, Nov. 25 (Reuters) – Chinese regulators have opened an investigation into the use of insurance funds to curb illegal use and limit risk in the industry, the Shanghai Securities News reported on Thursday. , supported by the state.
He said an earlier routine inspection found that some insurance institutions had serious compliance issues.
Regulators will review the investment activities of insurers that went beyond the permitted investment framework, including those invested in commercial real estate projects and unlisted real estate developers, according to the report, citing anonymous sources from insurance companies.
It will also look at areas where insurers have helped raise funds for real estate projects on an irregular basis, or even exceeded the fundraising limit, the report added.
Institutions must now formulate recovery plans – including holding staff accountable for violations or shortcomings – thoroughly analyze the root causes of problems, re-examine assets and promote reasonable replenishment of capital, the newspaper said.
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Reporting by Brenda Goh and Cheng Leng; Editing by Christopher Cushing and Grant McCool
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