Yao Zhenhua, Chairman of Baoneng, which is the parent company of Foresea Life Insurance, has been banned from working in China’s insurance sector for 10 years. He was found to have provided “fake materials” and “violated rules for using an insurance fund”, the China Insurance Regulatory Commission (CIRC) said in a statement. The insurer will have its online business suspended, as well as applications to launch new products and trading in its stocks. Yao, 47, came under the spotlight after launching an unsolicited bid to take control of property developer Vanke through Baoneng Group. Baoneng was condemned by Chinese regulators after it funded the purchase of CNY43 billion of Vanke’s shares through insurance premiums generated by Foresea’s universal life insurance product. “It is very unusual for the CIRC to directly revoke a personal qualification of the Chairman of an insurance company, when it comes to punishment of wrongdoings,” said Dayton Wang, Analyst with Guotai Junan International. “It is likely that the regulator is making an example of Yao to warn other tycoons,” he added. Jerry Li, Insurance Analyst with China Merchants Securities, said Foresea Life is likely to suffer a loss after its universal life business was suspended by the regulator, as it contributes 80% of its premiums.