BEIJING (Reuters) - China’s insurance regulator on Thursday called on insurance companies to strengthen supervision of operations and investment activities and correct market disorder.
Financial regulators have moved aggressively in recent weeks to tackle risk in China’s financial system by issuing a slew of regulations and notices.
The China Insurance Regulatory Commission (CIRC) cautioned insurance firms to effectively close regulatory loopholes in the latest risk notice published on its website late on Thursday.
In recent years, some insurers have taken sizable stakes in market-listed companies, often funded by the issuance of high-yield, short-term universal life insurance and other investment products.
Thursday’s notice cautioned insurers to maintain strict controls to prevent illicit activities, and pay particular attention to the illegal use of funds, falsified shareholder investment, and corporate governance failures.
Reporting by Matthew Miller; Editing by Clarence Fernandez