Chinese regulators adopted shock and awe tactics last Saturday to target misbehaving shareholders of insurers and banks by naming and shaming 38 corporate investors for having “gravely” violated rules and laws in their first such exercise, reported Reuters.
The CBIRC said the disclosure aimed to limit financial risks and improve corporate governance, adding that such lists of names would be regularly published in future.
The 38 shareholders named by CBIRC have engaged in activities such as flouting regulatory ownership rules, using unqualified sources of funding, fabricating materials, or profiting from illegal transactions, the regulators said.
The list includes shareholders in Anbang, Kunlun Health Insurance and Ningbo Donghai Bank, according to the CBIRC statement and information compiled by Reuters based on China’s business registration database.
China has stepped up scrutiny of shareholders in financial institutions after the failure of once-acquisitive conglomerate Anbang Insurance Group, which the government seized in early 2018. Its chairman and key shareholder, Wu Xiaohui, was prosecuted and jailed for economic crimes.
Despite the cleanup efforts of the past few years, some shareholders in insurers and banks still engage in illegitimate ways, the regulator said, so publishing the names of offenders serves to inhibit them.