Insurers eyed in China amid call for crackdown on takeovers
The China Securities Regulatory Commission should crackdown on hostile takeovers and improve corporate governance rules to deter cash-rich "barbarians" such as insurance companies Baoneng Group and Angang Insurance from taking control of China's industry leaders, according to Zheng Zhigang, professor of finance at Renmin University. He raised concerns that more than 100 companies listed on the A-share market are without controlling shareholders and could become the first targets. "The innovative ability and the efficiency of the whole society will be at stake, with the net result a negative effect on the real economy," Zhigang warned.

The fight for control of Vanke has grabbed the headlines in recent months, but the list of Chinese companies becoming embroiled in hostile takeover battles is growing by the day, which experts are now suggesting may start to put undue pressure on the real economy. Photo: Reuters