Chinese insurers and their bank partners have halted sales of popular high-yielding investment products in recent days under pressure from regulators, signalling that the explosive growth in premiums that fuelled the industry’s aggressive acquisition spree in recent years is set to slow.

Chinese life insurance premiums rose 39 per cent through the first 11 months of 2016 following 25 per cent growth in 2015. The biggest driver has been the sale of “universal insurance” policies that are effectively wealth management products rather than protection-style insurance. Proceeds from insurance WMPs have, in turn, financed foreign acquisitions by Anbang Insurance and corporate raiding by Baoneng.

Regulators and analysts have warned that this strategy carries risks, since many insurance WMPs carry short maturities of one or two years, while proceeds are invested long-term in illiquid assets such as foreign real estate or large stakes in listed companies. In December, the China Insurance Regulatory Commission said it would suspend new product approvals by insurers for which medium- and short-term products comprised more than half of total premiums in a given quarter.