Chinese tycoon drops from view
Only a year ago he was hailed as one of the boldest dealmakers in China.
But on Wednesday, with scant explanation, Wu Xiaohui was said to be unable to perform his duties as chairman of Anbang Insurance Group Co. In a terse statement sent to reporters around 2 a. m. Beijing time, Anbang said only that Wu — who had spent more than a decade transforming the company into a global juggernaut — was no longer able to serve in his post because of personal reasons. Other senior executives will carry out his responsibilities, the Beijing-based company said.
The development added another layer of intrigue to the story of Anbang, whose overseas acquisition spree has slowed in recent months amid increased scrutiny at home and abroad. China’s central bank was said to look into suspected breaches of anti-money laundering rules at the insurer late last year, while authorities temporarily banned Anbang’s life insurance unit from selling new products in May. High-profile bids for U.S. hotels, insurance assets and a Manhattan office tower owned by the family of U. S. presidential adviser Jared Kushner have all fallen through over the past 18 months.
“It looks very unlikely that Anbang will be able to continue its overseas buying spree,” said Grace Zhou, a Hong Kong- based analyst at ICBC International. “Its business model is no longer viable given tightened regulatory scrutiny,” Zhou said, adding that the latest shock to the firm’s reputation could make it harder for Anbang to tap international financing.
The nature of Wu’s role in any investigation has become the subject of widespread speculation. Before Anbang’s statement, Caijing Magazine, citing unidentified sources, reported that Wu had been taken away by Chinese authorities on June 9. The article, which said it was unclear whether Wu was assisting with a government investigation, was later deleted from the magazine’s website.
It wouldn’t be the first time a Chinese tycoon has allegedly fallen afoul of Chinese authorities. Prominent financier Xiao Jianhua was taken by agents from a Hong Kong hotel earlier this year and presumed to have been brought back to China, according to media reports. Executives of a firm controlled by tycoon Guo Wengui stood trial this month on charges of loan and foreign exchange fraud, state-owned Xinhua News Agency reported, after Chinese authorities issued a request to Interpol for Guo’s arrest in April.
Anbang has a l most US$294 billion of assets and more than 30,000 employees, according to its website.
It is controlled by a group of companies owned by about 100 people with ties to Wu, the New York Times reported last year. At least 35 of Anbang’s corporate shareholders can trace all or part of their ownership to relatives of Wu or his wife, according to the report.