CHINA TAKES OVER ANBANG

China took over Anbang Insurance Group for a year on Friday and said its former chairman faces prosecution for 'economic crimes', in the government's most drastic move yet-

To rein in politically connected companies whose splashy overseas investments have fuelled fears of a financial collapse.

The high unusual commandeering of Anbang signalled deep official concern over the Beijing-based company's financial situation and comes -

As the government looks to address spiralling debt in the world's second-largest economy.

The China Insurance Regulatory Commission said Anbang, which has made a series of high-profile  foreign acquisitions in recent years, had violated insurance regulations and operated in a way-

That may ''severely'' affect its solvency.

The announcement also clarified the fate of Anbang's chairman Wu Xiaohui, who was reported by Chinese media to have been detained last June.

The Insurance regulator confirmed Wu was being ''prosecuted for economic crimes'', a startling fall from grace for a man who reportedly married a granddaughter of late Chinese leader Deng Xiaoping.

A statement of government prosecution in Shanghai said Wu was suspected of fraudulent fundraising and ''infringement of duties''.

Acquisitive private companies such as Anbang, HNA, Fosun and Wanda have increasingly loomed in the government's  cross-hairs  as it conducts a sweeping crackdown on potential financial risks.

[Agencies].