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China’s leading insurance company cracks down on alcohol consumption
People’s Insurance Company of China (PICC), a major state-owned property and long-standing casualty insurance company, has issued one of the strictest alcohol bans in China, triggering a share plunge in Baijiu companies.
The largest non-life insurance company in China, PICC Property and Casualty Company Limited, has recently issued a strict alcohol prohibition to all of its employees, prohibiting them from drinking on or off work, except for weekends.
The announcement of the PICC’s “Prohibition on Alcohol” has drawn significant attention and sparked a decline in shares in spirit companies. Baijiu companies Guizhao Maotai and Wuliangye saw a decline of 3% and 6% respectively.
The “Prohibition on Alcohol” includes restrictions on drinking during internal official activities, on working days, and using public funds for alcohol-related banquets. The regulations also require employees to abstain from participating in banquets that may affect the fair execution of official duties, drunk driving, inciting trouble and so on.
The insurance company’s strict stance on alcohol consumption follows similar prohibitions introduced by other insurance companies and public officials across the Mainland.
In 2018, the Xinyang Central Branch of China Insurance issued regulations prohibiting drinking on working days. The idea of abstaining from alcohol on workdays has become a conscious choice among insurance company employees.
It is a recent trend in the mainland tightening regulations on alcohol consumption and related businesses. The China Securities Regulatory Commission recently clarified industry requirements for companies applying for the main board, with companies involved in discipline training, liquor, and finance potentially being prohibited from listing.
This move by PICC Insurance is aimed at maintaining the image of the insurance industry and improving work style among its employees. The company hopes to set an example for other organizations in the industry, promoting a conscious effort to abstain from alcohol consumption during work hours.
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