Fallen Chinese giant Anbang Insurance sells remaining stake in Chengdu bank as asset disposal continues

Anbang Insurance Group has sold its remaining 20.5 per cent stake in a Chengdu city bank, one of its most valuable investments, as it continues to offload assets after Beijing’s takeover of the once high-flying conglomerate.

Anbang sold 10.5 per cent of its shareholding in Chengdu Rural Commercial Bank (CRCB) to the state-owned Chengdu Wuhou Industry Investment & Development Group, according to an announcement on CRCB’s website. The other 10 per cent went to Chengdu Hi-tech Investment Group, another state-owned entity.

The total transaction value was not disclosed, but an earlier filing showed it was worth about 8.7 billion yuan (US$1.23 billion), after Anbang twice discounted the price by around 10 per cent when it failed to sell.

The Chinese government took control of the fallen conglomerate in February 2018 as part of a crackdown on financial risks triggered by the highly-leveraged buying sprees of several private companies. Anbang’s founder and former chairman Wu Xiaohui was arrested and later sentenced to 18 years for defrauding investors and embezzlement.

Since then, the government has been in talks with investors to offload many of the company’s assets.

Anbang sold its other 35 per cent shareholding in CRBC in March to state-owned Chengdu Xingcheng Investment Group. The value of that deal was not revealed either. The stake was put up for sale for 16.5 billion yuan at a discounted rate, according to the most recent document filed in December.