Government Considers Restructuring of Funde Sino

(Beijing) — Funde Sino Life, one of China's largest life insurers, is facing a possible forced restructuring by regulators as they comb through the company's operations for risk and signs of illicit dealings, according to people close to the investigation.

Among the options the China Insurance Regulatory Commission (CIRC) is considering regarding troubled Funde is a restructuring that would likely diversify its share ownership structure, possibly diluting the holdings of its controlling shareholder, former Funde Chairman Zhang Jun. The move could also reform its business line, which relies heavily on risky, short-term investment-type insurance policies, the sources said.