HNA Banned From Transactions With Insurance Unit for Six Months

China banned an HNA Group Co. insurance unit from conducting some financial transactions with its affiliates for six months after authorities found various regulatory violations.

The China Insurance Regulatory Commission (CIRC) told HNA’s Bohai Life Insurance to stop some direct and indirect transactions — including loans and financial aid — with the group and its units, the regulator said on its website late Wednesday.

During on-site checks, the CIRC uncovered breaches such as the failure to report related-party transactions, untimely disclosures and a compensation system that didn’t meet regulatory requirements, it said.

(Related: Celent Study: China’s Life Insurance Market Experiences Dip)

HNA, whose units include Hainan Airlines Holding Co., didn’t respond to a request for comment.

It’s the latest setback for a group that stood out as one of China’s most acquisitive companies up until recently.