Fallen Chinese financial giantAnbang Insurance Group is said to transfer some of its shares in a bank based in the southwestern city of Chengdu to an investment firm owned by that city’s government, reported Caixin.
Chengdu Xingcheng Investment Group, an investment vehicle controlled by the city government, is expected to lead the purchase of a 35% stake in Chengdu Rural Commercial Bank, according to Caixin sources. The deal will likely be announced before the end of the year.
The sale is part of efforts by China’s insurance regulator to dismantle Anbang. It has been systematically selling off Anbang’s assets since taking over the scandal- and debt-ridden conglomerate last February. The regulator has vowed to dispose of unnecessary financial licenses held by Anbang that don’t do much to augment the value of its core insurance business. Anbang founder Wu Xiaohui was sentenced to 18 years in prison last May for fundraising fraud and embezzlement.