(Yicai Global) Feb. 3 – China's insurance regulator has discovered new insider and rat trading by insurance companies during its latest crackdown. It has found out that significant amount of insurance funds was involved in such trading, said Chen Wenhui, vice-chairman of China Insurance Regulatory Commission (CIRC), in a recently published article, implying that CIRC will take further action in the near future.
Chen made this disclosure in his article published in the latest issue of China Finance, a journal managed by the People's Bank of China. It is not the first time that CIRC officials disclosed the latest regulatory moves in the public sphere, and almost every "tip-off" was followed by regulatory penalties imposed on companies involved.
"There must be reasons for a senior regulatory official to make such a public statement," commented an industry expert. Such remarks are followed by regulatory actions, and it is not the first time that it has happened, so CIRC will take further steps soon, the expert suggested.