China's government recently swooped in on a high-profile insurer that made landmark acquisitions across the globe. Now it is bailing the firm out.
Chinese officials removed the founder and chairman of finance conglomerate Anbang, Wu Xiaohui, in February as finews.asia reported. To ensure Anbang's stability the Chinese government will now pump 60.8 billion Chinese renminbi into the insurance giant, the «South China Morning Post» reported.
The injection of cash will take Anbang’s registered capital to 61.9 billion renminbi, said China's Insurance Regulatory Commission (CIRC) in a statement on its website (in Chinese).
Anbang's founder Wu was placed on trial last week on charges that he defrauded investors and misused company money. He was first detained for questioning by Chinese authorities last June, while regulators worked to curb the policies powering the company's growth.
