Boss of New China Asset Management Disappears, Sources Say

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Zhang Chi. Photo: File photo

The general manager of New China Life Insurance Co. Ltd.’s (NCL) onshore asset management subsidiary is missing and has likely been detained by graft-busters, sources with knowledge of the issue told Caixin.

People close to the state-owned insurer said that Zhang Chi has been removed from his positions at New China Asset Management Corp. Ltd. (NCAMC). Multiple attempts by Caixin to reach out to either Zhang or NCL were unsuccessful.

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Zhang Chi, general manager of New China Life Insurance's asset management subsidiary, is missing and likely detained regarding an investigation into the company's investments.
Former chairman Li Quan also went missing, with his disappearance likely linked to the insurer’s offshore asset management.
NCL's nonstandard asset investments significantly declined, compounded by a property market slump and regulatory penalties.

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Who’s Who

New China Life Insurance Co. Ltd.: New China Life Insurance Co. Ltd. (NCL) is a state-owned insurer listed in Hong Kong and Shanghai. The company's onshore asset management subsidiary, New China Asset Management Corp. Ltd. (NCAMC), has recently faced scrutiny due to its investments, particularly in real estate. NCL’s nonstandard asset investments have significantly declined since 2020. The company was fined by the National Financial Regulatory Administration for allocating insurance funds to commercial housing projects.

New China Asset Management Corp. Ltd.: New China Asset Management Corp. Ltd. (NCAMC) is the onshore asset management subsidiary of New China Life Insurance Co. Ltd. (NCL). Established in 2006, it has experienced a drop in nonstandard assets investments and was fined by the National Financial Regulatory Administration for regulatory violations, including allocating insurance funds to commercial housing projects. Zhang Chi, its former general manager, has been detained for graft investigations.

New China Asset Management (Hong Kong) Ltd.: New China Asset Management (Hong Kong) Ltd. is the offshore asset management subsidiary of New China Life Insurance Co. Ltd. (NCL). Li Quan, its former chairman, has been unreachable since late March, with his disappearance likely linked to this subsidiary. Li chaired the Hong Kong-based subsidiary from 2013 to 2023 and collaborated with Zhang Chi for over a decade.

China Life Asset Management Co. Ltd.: China Life Asset Management Co. Ltd. is a securities company where Zhang Chi previously worked as general manager of the fund investment department for seven years. Zhang moved from securities to insurance asset management in 2004 before joining New China Asset Management Corp. Ltd. (NCAMC) in 2011 as a vice general manager.

China Vanke Co. Ltd.: China Vanke Co. Ltd. is a real estate developer. New China Life Insurance Co. Ltd. (NCL) experienced significant financial declines in both stock and bonds due to its involvement in China Vanke's nonstandard debts. The property slump and these nonstandard debts have hamstrung NCL's alternative investments, potentially leading to serious consequences if not properly managed.

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What Happened When

2011：: Zhang Chi joined NCAMC as a vice general manager.

2019：: Zhang Chi became the general manager of NCAMC.

2020：: NCL's investments in nonstandard assets began to decline.

2023：: NCL’s nonstandard assets investments saw a year-on-year drop of 29%.

January 2024：: NCAMC disclosed a fine imposed by the National Financial Regulatory Administration for violations, including allocating insurance funds to commercial housing projects.