Troubled Chinese insurer receives government bailout

BEIJING – The troubled Chinese insurer that owns New York City’s Waldorf Hotel is receiving a $9.6 billion bailout from a government-run fund to shore up its finances.

Anbang Insurance Group said Wednesday the money from the China Insurance Security Fund would help it to “maintain stable operations.”

Regulators seized control of Anbang in February after a multibillion-dollar global asset-buying spree raised questions about its stability.

Its founder, Wu Xiaohui, went on trial last week on charges he defrauded investors and misused company money. State television showed him confessing in court but no verdict has been announced.

Anbang said the injection of 60.8 billion yuan ($9.6 billion) would increase its registered capital to 61.9 billion yuan ($9.8 billion). That would mean the government fund owns 98 per cent of the company.