Thursday, December 14, 2017

Industry fears fall-out from Anbang crisis

Some industry specialists fear that there may be industry-wide repercussions from the crisis at Anbang, which has seen its high-profile chairman, Wu Xiaohui, step down as he is investigated by Chinese authorities.

Analysts are concerned that Xiaohui’s apparent disappearance will lead to a liquidity crunch that will infect the financial industry.

Guo Zhenhua, head of the insurance department of Shanghai University of International Business and Economics, said Wu’s case could overthrow a widely-accepted public perception of Anbang as being one of the country’s most resourceful and powerful companies.

Guo expressed worry that this could escalate into a massive cancellation of insurance policies, which could weigh on the company’s cash flow.

Anbang has been one of China’s most aggressive offshore investors. On Tuesday, the company announced that Wu cannot perform his role as chairman due to “personal reasons”.

In his absence, the authority within the firm has been vested upon other executives.

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