Shares finish lower on Anbang’s news

Source: Xinhua | 2017-06-15

SHANGHAI shares ended lower yesterday after news that the chairman of insurer Anbang Group had been detained.

The Shanghai Composite Index shed 0.73 percent to end at 3,130.67 points.

Insurance firms led the decline, with China Life Insurance Co shrinking 3.48 percent to 27.49 yuan (US$4.05) and China Pacific Insurance (group) Co losing 3.38 percent to 31.69 yuan.

“Anbang’s news hurt the market,” said Zheng Shaorong, analyst at Sinolink Securities.

Wu Xiaohui, Anbang’s chairman, was taken away by authorities, the group said on Tuesday. The group cited “personal reasons” for his removal.

In May, Anbang was banned from issuing new life insurance products by the China Insurance Regulatory Commission.

China Minsheng Banking Corp, in which Anbang holds a 11.2 percent stake, fell 0.37 percent to 8.06 yuan, while Gemdale Corp, a property group where Anbang owns 20.4 percent, shed 4.34 percent to 10.57 yuan yesterday.

The International Monetary Fund’s forecast of a 6.7 percent growth for China’s economy this year, slightly higher than 6.6 percent last year, didn’t ignite the market.