Watchdog in stark warning to insurers

Firms' short-term speculation to be harshly punished

China's insurance regulator vowed on Wednesday to "severely punish" short-term speculation by insurers and their aggressive purchase of listed companies' stakes, a sign of intensified regulation to curb systemic risk in the industry.

The regulator has also moved to contain "aggressive" pricing and the "irrationally high" rate of returns of some insurance policies, according to China Insurance Regulatory Commission Chairman Xiang Junbo.