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Life Insurance Trust and Investment Co. Ordered to Disband
The People's Bank of China, China's central bank, announced on Oct. 18 that the China Life Insurance Trust and Investment Co., which is a subsidiary of the China Life Insurance Co. (CLIC), and its office in southern Jiangsu Province would be disbanded.
The disbandment is part of a nationwide effort by the People's Bank of China (PBOC) to consolidate China's trust and investment industry.
All of the China Life Insurance Trust and Investment Co.'s financial business was ordered to terminate on Oct. 18, and CLIC will organize a team to liquidate the trust company. During liquidation, its independent legal-person subsidiaries may conduct business as usual.
An official from the trust company said that the People's Bank of China (PBOC) had actually issued an internal administrative command to disband the branch early in January 1998, when the central bank had launched the rectification campaign.
The trust company immediately began to liquidate creditor's debts even though at that time it still had operational capabilities.
The official also said that the trust company's foreign and domestic creditors' debts had both been cleared. Some of its employees were transferred to CLIC, and the trust company's securities department was transferred to the Galaxy Securities Co.
It was earlier reported that the PBOC plans to retain no more than three national-level trust and investment companies-the China International Trust and Investment Co., the China Coal Trust and Investment Co. and the China Economic Development Trust and Investment Co. All other such companies will be either restructured or disbanded.
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