Taiwanese regulators have rejected the $US2.2 billion ($2.4 billion) sale of AIG’s Nan Shan Life unit to a Chinese company.

The planned sale, to a consortium comprising Hong Kong-based financial services company Primus Financial Holdings and investment company China Strategic Holdings, was held to contravene regulations on Chinese mainland investment.

It also failed to meet criteria on experience in the insurance business and ability to raise funds.

The purchasers have 30 days to appeal the decision.

The rejection follows a proposed $US35.5 billion ($39 billion) sale of AIG’s AIA Asian life unit to UK-based Prudential being cancelled in June this year.