China will not allow conglomerates to use their insurance arms as financing platforms, the sector regulator said, in an apparent warning to companies in a rare and high-profile takeover battle involving insurers.
Baoneng, using its two insurance units as funding platforms and tapping shadow lending options, has built up a stake of 25 percent in China Vanke, the largest developer, raising expectations of a hostile takeover.
Vanke and Baoneng received notices on Thursday from China’s securities regulator for violating disclosure regulations on shareholding changes at the property development company.
