NEW CHINA LIFE BOSS QUITS OVER PROPERTY SCANDAL

The board of New China Life, China’s fourth-largest assurer that is part-owned by Zurich Financial Services Group, has accepted the resignation of chairman Guan Guoliang. Mr Guan left on December 27 and Sun Bing, the company’s general manager, has been named interim chairman. Financial News , the voice of China’s central bank, stated that Mr Guan was under investigation for unauthorised actions in the real estate sector. These entailed loans worth 800m yuan to three companies guaranteed by Mr Guan, that allegedly were not recorded in the company’s annual report. The largest of the loans was said to be for 500m yuan, to Beijing Chengzhong Mansion Real Estate Co. Further sums were claimed to have been transferred between New China Life and Beijing Chengzhong without proper documentation. New China Life has about a 6.5% share of the Chinese life market. Zurich Financial Services is the main foreign shareholder, with an 18.9% stake. Japan’s Meiji Life has a 4.5% shareholding.