Anbang Rescuer Skirts Share Sale Rules Via ETF Swap

Caixin Global | Sep 20, 2019 at 9:04 PM
  • Dajia Insurance Group, the state entity created to take over some of the assets of troubled Anbang Insurance Group Co. Ltd., has used an unusual route to sell off one of its corporate shareholdings in order to skirt regulations limiting stock disposals by big investors.
  • Swapping shares in a company for ETFs, investment funds traded on stock exchanges that track an underlying index, is increasingly being used by large shareholders to reduce their stakes in listed companies without violating restrictions imposed by the China Securities Regulatory Commission (CSRC) in 2017.
  • Dajia Insurance was formally set up in June by state-owned bailout fund China Insurance Security Fund Co. Ltd., state-owned Shanghai Automotive Industry (Group) Corp. and state-owned oil giant China Petrochemical Corp.