China's insurance regulator on Friday announced a decision to take over Anbang Insurance Group for a year starting the same day, in light of the company's former chief being prosecuted for economic crimes.

China's Anbang Insurance Group, which was taken over by the government in 2018, said it has put its 35 percent stake in Chengdu Rural Commercial Bank up for sale for 16.5 billion yuan ($2.4 billion), its second attempt to offload the lender.

The planned sale, revealed in a filing to the Beijing Financial Assets Exchange on Tuesday, comes as China attempts to tame financial and credit risks among the country's smaller lenders while Anbang, which was once among China's most aggressive dealmakers, conducts asset sales.

Anbang tried to sell Chengdu Rural Commercial Bank for 16.8 billion yuan in December 2018, only to withdraw the offer in January without explanation.

Potential investors include Chengdu Xingcheng Investment Group, a local government-backed investment vehicle, according to one source familiar with the matter and financial news outlet Caixin.

Chengdu Rural Commercial Bank and Chengdu Xingcheng Investment Group did not immediately respond to requests for comment.

In February 2018, the Chinese government seized control of Anbang as part of a campaign to curb financial risks in the aftermath of a massive asset-buying spree by a handful of private-sector conglomerates.

China's financial regulators have also pushed local governments to take the lead in managing crises that have flared up among small lenders. 

Five regional banks have been hit by management or liquidity problems in 2019.

Anbang is the biggest shareholder of state-backed Chengdu Rural Commercial Bank.

In the event of multiple bids for Anbang's stake in the bank, the Beijing Financial Assets Exchange will conduct an auction that will conclude on February 1, the filing said.

Reuters - Global Times