China takes over insurer that owns Waldorf Astoria

The Chinese government is the new owner of the Waldorf Astoria hotel in New York after seizing control of the politically well-connected Anbang insurance group and prosecuting its chairman for economic crimes. In a move that illustrated Beijing’s willingness to curtail big-spending conglomerates as it cracks down on financial risk, the China Insurance Regulatory Commission (CIRC) said Anbang had violated laws that “may seriously endanger the solvency of the company”. CIRC said Anbang’s chairman and key shareholder, Wu Xiaohui, had been prosecuted. The Shanghai prosecutors office said that Wu had recently been charged with fundraising fraud and abuse of his position. During the government takeover of Anbang Group, which will last for a year, the company will be managed by officials from the CIRC, central bank and other key financial regulators and state bodies.