Deals
China Regulator Seizes Anbang, Chairman Faces Fraud Prosecution
- Wu Xiaohui faces fraud and embezzlement charges in Shanghai
- Insurer epitomized the rise and fall of China’s M&A ambitions
This article is for subscribers only.
China’s government seized temporary control of Anbang Insurance Group Co. and will prosecute founder Wu Xiaohui for alleged fraud, cementing the downfall of a politically connected dealmaker whose aggressive global expansion came to symbolize the financial overreach of China’s debt-laden conglomerates.
The surprise move furthers President Xi Jinping’s anti-corruption and de-leveraging campaigns while providing a government backstop for the high-yield investment products that Anbang sold to hordes of Chinese citizens. It suggests that after months of clamping down on acquisitive tycoons, China is increasingly focused on insulating the economy from their shaky finances.