Nine Chinese Financial Institutions With Over 1 Trillion Yuan In Assets Are Nationalized On The Same Day
Perhaps it's a coincidence that just two days after we reported that China has been rocked by an "unprecedented" surge in bank runs which forced local regulators to "publicly vouch for the soundness of its lenders as the police halted the run", on Friday Chinese financial regulators took over a record nine financial institutions which they said broke rules and added risk to a financial system facing increasing headwinds from the coronavirus pandemic. Or perhaps the two are in fact connected, and as faith in China's financial system sinks and more money is pulled out of the country's insolvent banks, more banks will be bailed out or nationalized.
Whatever the case, the takeovers of four insurers, two trust firms and three securities companies that managed a combined 1 trillion yuan ($143 billion) in assets represent Beijing’s first major regulatory move this year and follows the extensively documented bailouts of several regional lenders last year. Among the companies taken over the China's Banking and Insurance Regulatory Commission are Huaxia Life Insurance Co., Tianan Life Insurance Co., Tian An Property Insurance Co. and Yian Property Insurance Co, the regulator said on its website.
https://www.zerohedge.com/geopolitical/nine-chinese-financial-institutions-over-1-trillion-yuan-assets-are-nationalized-same