China bans Anbang from selling two investment products

Regulatory action against Waldorf owner comes amid scrutiny of its financials

TRD New York /
May.May 05, 2017 11:45 AM

Anbang Insurance Group — the Chinese insurer that’s invested heavily in real estate overseas — was banned from selling two investment products by Chinese regulators on Friday.

One of the products had been marketed as a long-term investment vehicle, even though it was effectively a two-year investment product subject to strict government regulation. In a scathing statement on its website, the regulator said Anbang should pay “high attention” to its offerings and “fix the work on product development and management in strict accordance with supervision policies and requirements,” the New York Times reported.

Amid China’s scrutiny of the country’s banking system, insurers like Anbang have become preferred lenders for real estate developers in recent years. Investment products — like the ones that were just banned — have boosted insurance companies’ war chests.

In a separate move, China’s cabinet dismissed the chairman of the country’s insurance commission, Xiang Junbo, following a corruption investigation.

Anbang TRData LogoTINY has rolled out an array of wealth management products, a risky class of products that promise high rates of return but are lightly regulated.

Anbang, which has nearly $275 billion in assets, bought the Waldorf Astoria in New York for $1.95 billion in 2014.  But its also pulled out of several deals. In January, Chairman Wu Xiaohui met with Jared Kushner to discuss the possible acquisition of Kushner Companies’ 666 Fifth Avenue. Talks broke down in March.

Earlier this month, social media erupted with rumors that Wu had been detained by Chinese regulators — which Anbang adamantly denied . The Chinese investigative magazine Caixin has since published a report questioning Anbang’s finances and characterizing its shareholder structure as being “like a maze.” The insurer threatened to sue Caixin for “malicious” and “inaccurate” reporting. [NYT]E.B. Solomont 


Related Articles

arrow_forward_ios
Mayor Bill de Blasio and Gov. Andrew Cuomo (Getty, Paul Dilakian)

Despite looting, NYC reopening on track: Cuomo

Despite looting, NYC reopening on track: Cuomo
(Photos by Sylvia Varnham O'Regan, Getty)

After looting, BIDs reverse guidance on boarding up stores

After looting, BIDs reverse guidance on boarding up stores
“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think

“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think

“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think
Clockwise from bottom left: Robert Reffkin of Compass, John Gomes, Scott Rechler of RXR Realty, Rich Barton of Zillow, Gary Keller of Keller Williams and Don Peebles of The Peebles Corporation (Getty)

“America is in crisis:” Real estate leaders address George Floyd protests

“America is in crisis:” Real estate leaders address George Floyd protests
A mass timber project in Cleveland is now under construction and could be the nation’s tallest when completed. Harbor Bay Real Estate Advisors’ Intro development will rise nine stories with 298 residential units (Credit: Harbor Bay Real Estate Advisors)

Mass timber project in Cleveland could be nation’s tallest

Mass timber project in Cleveland could be nation’s tallest
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz with 20 Bruckner Boulevard in the Bronx (Getty; Google Maps)

“Dream” comes true for long-vacant Bronx ice house

“Dream” comes true for long-vacant Bronx ice house
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
Photo illustration of Sen. Brian Kavanagh (Credit: Kavanagh by Albin Lohr-Jones/Pacific Press/LightRocket, Getty Images, iStock)

Lawmakers skip #CancelRent in favor of more modest bills

Lawmakers skip #CancelRent in favor of more modest bills
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...