Nine companies seized by China's regulator are linked to Tomorrow Group, the investment conglomerate owned by Xiao Jianhua. China's regulators will assume control of nine financial firms linked to a financier who was taken from a hotel in Hong Kong by Chinese authorities in 2017 and has not been seen in public since. Beijing seized control of Baoshang Bank Co. -- another company linked to Xiao -- in May last year citing its “serious” credit risks. Last month, regulators were said to be mulling increased oversight of Huaxia Life, including sending a group of executives from state-owned China Life Insurance Group Co. to assist. The CBIRC said in its statement that authorities will seek market-oriented restructurings for the six insurance and trust firms and the bottom line is to avoid any systematic financial risks.

Source: The Standard July 20, 2020 05:37 UTC