BEIJING (Reuters) – Yi An Property and Casualty Insurance, a small Chinese insurer previously controlled by embattled Tomorrow Holdings, said on Wednesday it was seeking strategic investors to participate in its bankruptcy and reorganisation process.
Priority will be given to large and medium-sized financial institutions, Yi An P&C Insurance said in a post on the National Enterprise Bankruptcy Information Disclosure Platform, an official bankruptcy data website.
Yi An is one of nine financial firms affiliated to Tomorrow Holdings, which was singled out in a government clamp-down on systemic risks posed by financial conglomerates a few years ago.
Chinese authorities took over its affiliated financial firms in July 2020 and have extended official control over the companies until July 2022.
Yi An was the first of the seized companies to announce its restructuring plan, offering a possible roadmap for the other firms.
An eligible consortium of investors in Yi An should have no more than five members, and large and medium-sized financial institutions should be the main source of investment, according to the post.
Strategic investors must have sufficient capital strength and prudent risk management capabilities to offer resources and support for the healthy development of the company, according to Yi An.
The requirements are partly to defuse risks, the company said.
(Reporting by Ella Cao and Ryan Woo; Editing by Bradley Perrett)
