HNA Banned From Transactions With Insurance Unit for Six Months



China banned an HNA Group Co. insurance unit from conducting some financial transactions with its affiliates for 6 months after authorities found various regulatory violations.

The China Insurance Regulatory Commission told HNA’s Bohai Life Insurance to stop some direct and indirect transactions — including loans and financial aid — with the group and its units, the regulator said on its website late Wednesday. During on-site checks, the CIRC uncovered breaches such as the failure to report related-party transactions, untimely disclosures and a compensation system that didn’t meet regulatory requirements, it said.

HNA, whose units include Hainan Airlines Holding Co., didn’t respond to a request for comment.

It’s the latest setback for a group that stood out as one of China’s most acquisitive companies up until recently. China has been clamping down on HNA and other top Chinese dealmakers this year to stem capital outflows, while regulators in Europe and the U.S. have also scrutinized HNA over some of its deals.

The Shanghai stock exchange last month questioned Hainan HNA Infrastructure Investment Group Co. about the sale of a stake in a property project to an affiliate.

The insurance regulator said in separate statements it’s also temporarily banning some business at other insurers such as Zhujiang Life Insurance and Shanghai Life Insurance after inspectors found violations.




Source link

Leave a Reply

Your email address will not be published. Required fields are marked *