BEIJING, Feb. 24 (Xinhua) -- The top insurance regulator on Friday barred Yao Zhenhua, chairman of Foresea Life Insurance, from the insurance industry for 10 years for irregular market operations.
China Insurance Regulatory Commission (CIRC) said in a statement that Foresea Life violated insurance regulations and provided false information during its capital increase.
Foresea Life, a subsidiary of financial conglomerate Baoneng, was suspended from selling its questionable high-return insurance service in December, after speculative stake buyouts in listed companies by heavyweight insurers caused concern.
To contain possible financial risks, the CIRC sent investigation teams to insurance companies, including Foresea Life, to review their management, financial sheets, insurance product services and capital use.
CIRC chairman Xiang Junbo warned earlier this week that using insurance funds for short-term speculation and hostile takeovers in listed firms would be addressed without mercy.
The CIRC said it will help the insurer improve the way it is run.