As head of the insurance regulator, Xiang oversaw rapid growth of the insurance industry, along with liberalization of investment rules that provided insurers greater latitude to invest more of their assets at home and overseas.
China’s insurance assets nearly doubled over the last three years, reaching 15.1 trillion yuan ($2.19 trillion) at the end of 2016.
In February, Xiang appeared at a press conference where he vowed the insurance regulator would take more punitive action to punish short-term speculators and reduce long-term risk.
Xiang said CIRC wouldn’t allow the insurance industry to become “a rich man’s club” or hideout for “financial crocodiles”.
The regulator has intensified a crackdown on risky activity by some aggressive players in the insurance sector, particularly those seen to be engaging in financial market speculation using expensive short-term funds.
Xiang, 60, took control of the insurance regulator in 2011 after serving as chairman of Agricultural Bank of China, one of the four biggest state banks.
Xiang was previously a deputy central bank governor and vice chief at the National Audit Office.
Xiang would be the most senior regulator hauled in during the anti-graft campaign since Yao Gang, a former deputy head of the China Securities Regulatory Commission, was put under investigation in late 2015 following a stock market crash.
