China’s Anbang insurance wreckage is valued at more than $ 5.2 billion in a recent attempt by state managers to disband a former high-altitude flight group led by prison tycoon Wu Xiaohui.
Investors are closely tracking Beijing’s long-standing efforts to dissolve Anbang insurance. Stunning downfall As a test case of how other abandoned groups that have plagued the state with billions of dollars in debt are managed.
Woo, Well-known businessman He married the family of the late Chinese leader Deng Xiaoping and transformed his local car insurance business, Anbang Insurance, through global takeover activities, including the purchase of the famous car insurance. Waldorf Astoria New York City hotels are $ 2 billion shy.
The end of the debt-bearing group culminated in 2018, when Wu was imprisoned for 18 years for fraud and embezzlement.It was in a series of collapses Embarrass the Chinese government And it aroused fear of the hidden corporate debt and instability of the country’s financial system.
Chinese national investor managing Anbang insurance assets — renamed Dajia Insurance — According to a filing with the Beijing Financial Assets Exchange, we plan to sell our shares for $ 5.19 billion.
Filing said the auction of nearly 99% of Dasia’s shares by the China Insurance Security Fund, a treasury-affiliated insurance sector relief fund, and the China Petrochemical Corporation will end on August 12.
When Anbang Insurance came under state control in 2018, the Group’s assets were RMB 2 trillion ($ 320 billion). However, according to the filings, Dazia’s total assets are valued at RMB34.6 billion ($ 5.34 billion) and its liabilities are valued at RMB584.6 million ($ 90 million). Dajia reported a net profit of RMB2.9 billion ($ 448 million) in 2020.
This sale is only available for bids from the consortium. According to people close to Chinese regulators, Beijing wants Dasia to operate under a diverse ownership structure, including three to five individual or state-owned shareholders. This is part of a plan to mitigate risk and add checks and balances after previous privately owned troubles.
Caixin, a leading Chinese business publication, reported that the sale was of interest from six consortia.Among those interested are e-commerce giant JD.com, state-owned car maker Chery Automobile, online insurance company Zhongan, and Fred WhoPreviously, he headed the Chinese division of Goldman Sachs.
As part of a broader move to improve and eliminate discipline in the Chinese market Implicit guarantee so far Analysts point out that Beijing is in increasing financial difficulty. Encourage creditors and China’s private sector To help share the burden of state lenders.
However, the winding process of unleashing the vast Anbang insurance has already run into some problems. Most notably, a US court ruled in favor of killing South Korea’s future assets at the end of last year. $ 5.8 billion transaction Buy 15 luxury hotels from Anbang Insurance in the US.