China Regulator Warns Insurers After ‘Rat Trading’ in Stocks
- CIRC to step up scrutiny of investments and punish misbehavior
- Zheshang P&C suspended from stock investments amid probe
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China’s insurance regulator said it will step up scrutiny of insurers’ stock-trading activities and punish violations, after barring a company from buying shares amid a probe into a former employee’s misbehavior.
The China Insurance Regulatory Commission will take action such as suspending or scrapping a violator’s “investment ability registration,” according to a statement on its website late Monday. The watchdog suspended Zheshang Property & Casualty Insurance Co.’s stock investment registration earlier this month after a former employee was found to be “rat trading.”