The Chinese insurance conglomerate that purchased the Waldorf hotel is floundering.
On February 23, one day after China wrapped up the Lunar New Year holiday and resumed a regular work schedule, the Chinese government announced that it has taken over Anbang Insurance Group — the Chinese financial conglomerate that purchased the luxury Waldorf Astoria hotel in New York in 2014. The announcement also confirmed that founder Wu Xiaohui, who had been detained in China for unknown reasons since early June 2017, is officially being prosecuted for financial crimes.
According to the announcement published by the China Insurance Regulatory Commission (CIRC) on its website, the CIRC, together with other top financial regulators — including China’s central bank, the China Banking Regulatory Commission (CBRC), the China Securities Regulatory Commission (CSRC), and the State Administration of Foreign Exchange (SAFE) — has officially assumed control of Anbang. The takeover is expected to last for one year. But if Anbang “fails to achieve an equity reorganization or resume its normal operation” by then, the takeover could be extended for another year, though two years of government control would be the maximum, according to the announcement.
