The highly unusual commandeering of Anbang signaled deep official concern over the Beijing-based company's financial situation and comes as the government looks to address spiraling 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 situation of Anbang Chairman Wu Xiaohui, who was reported by Chinese media to have been detained last June. The insurance regulator confirmed Wu is 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 by government prosecutors 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 crosshairs as it conducts a sweeping crackdown on potential financial risks. The four firms were in the vanguard of an officially encouraged surge in multi-billion-dollar overseas deals by Chinese firms to snatch up everything from European football clubs to hotel chains and movie studios, and were until recently considered untouchable because of their political connections.

Besides Wu's reported links to Deng's family, other examples include Wanda CEO Wang Jianlin - formerly the country's wealthiest men and a past delegate to the Communist Party leadership congress held every five years. Various media reports have said a range of other well-connected political figures in China have links to such conglomerates.

However, authorities have become increasingly alarmed by the corporations' influence, their webs of subsidiaries and debt, and capacity to trip up the Chinese economy if they overextend. With worries rising about capital outflows and reckless accumulation of debt, the government has for more than a year implemented a host of ever-tightening measures to stem the flow of billions of dollars into what it has called irrational investments overseas.

Established in 2004, Anbang grew from a property insurer into a financial services powerhouse, hitting headlines in 2014 when it bought the landmark Waldorf Astoria in New York for a record $1.95 billion. Among other acquisitions, in 2015 it bought U.S. insurer Fidelity & Guaranty Life for $1.6 billion, Korean insurer Tong Yang Life for around $950 million and Dutch insurer Vivat for about $167 million.

Anbang also made a $14 billion bid for Starwood Hotels & Resorts Worldwide, eventually pulling out of a bidding war with Marriott, and was in aborted talks with U.S. President Donald Trump's son-in-law and key adviser Jared Kushner to redevelop a Manhattan office tower, Bloomberg News reported last year. Its varied holdings could be at risk now, with the insurance commission saying it will dispose of certain Anbang assets, without giving details. It will remain a private company, but the takeover could be extended for a maximum of one more year if a planned overhaul of Anbang's corporate structure does not proceed as quickly as planned. The regulator added that Anbang's current situation was stable overall and would be further shored up