Beijing has cracked down on insurance and financial giant Anbang, taking control of the conglomerate and prosecuting the firm's head.
Wu Xiaohui, who was already detained by authorities last June, is to face prosecution for "economic crimes".
In an unusual move, Anbang Insurance Group will now be taken over by China's insurance regulator for one year.
The firm is known for its aggressive international acquisitions, including New York's Waldorf Astoria hotel, reports BBC on Friday.
Chinese authorities have been cracking down on the financial industry to guard against excessive borrowing and risk.
"Clearly it is designed to be a warning shot to firms engaged in particular types of financial engineering and leveraged acquisitions (as Anbang was)," said Tom Rafferty of the Economist Intelligence Unit.
"The government has made clear reducing financial risk is one of its main policy priorities."
Anbang, which started out as a car insurance firm with state-owned backers, is recognised as one of China's richest and most opaque conglomerates.
"The motivation in Anbang's case probably is not just about delivering a warning shot, however, but probably some also real concerns that the company was heading for insolvency and the impact this would have on retail investors that purchased products from the company," Mr Rafferty said.
In addition to selling insurance products, it owns a portfolio of international properties and global brands.
