China's insurance regulator banned Evergrande Life Insurance Co. Ltd. from entrusted stock investment following the life insurer's frequent speculative trading of listed companies.

Evergrande Life needs to improve its stock investment mechanism, stick to its asset allocation plan and strengthen risk management, the China Insurance Regulatory Commission said in a Dec. 9 statement.

The life insurer can only restart making equity investments after its corrective action report is approved by the regulator.

In response, Evergrande Life said it will cooperate with the regulator's decisions and focus on value long-term investing, the company said in a same-day statement.

Insurers' investment strategies have been widely discussed by Chinese media outlets, with the CIRC previously warning Evergrande Life that it did not support the company's strategy of using insurance funds for short-term, high-volume stock market speculation.