Shenzhen tycoon Yao Zhenhua barred from insurance industry for 10 years
Property tycoon behind attempted hostile takeover of China Vanke becomes the latest ‘financial croc’ to fall foul of regulators
Yao Zhenhua, the property tycoon whose hostile takeover attempt last year of China Vanke led to widespread soul-searching in the country about audacious acquisitions, has been banned from working in the mainland’s insurance industry for 10 years.
Foresea Life Insurance, a unit of Yao’s Baoneng group of companies, was found to have provided “fake materials” and “violated rules for using an insurance fund”, the China Insurance Regulatory Commission (CIRC) said in a statement on its website.
The insurer will have its online business suspended, as well as applications to launch new products and trading in its stocks.
The latest judgement by the authority is a huge blow to the company’s tussle for control of China Vanke, formerly the nation’s biggest property developer.
Nobody from Foresea Life was available to respond to questions, and a spokesperson from Vanke declined to comment.
It is likely that the regulator is making an example of Yao to warn other tycoons
Yao, 47, a generally low-profile figure, came under the spotlight after launching an unsolicited bid to take control of Vanke through Foresea’s owner, Baoneng Group.