China to relax foreign ownership rules for life insurers

Added 14th November 2016

China is looking to relax foreign ownership restrictions for life insurance companies and fund managers as part of its commitment to open up Asia’s largest equities market to foreign investors.

China to relax foreign ownership rules for life insurers

In a joint conference in London last week, Britain’s chancellor of the exchequer Philip Hammond and Chinese vice premier Ma Kai revealed that Beijing is planning to loosen its grip on stringent foreign ownership rules by allowing foreigners to hold controlling stakes in domestic financial firms.

Under the current rules, foreign investors are permitted to hold 50% of life insurance companies and a 49% stake in mainland mutual fund and securities brokerages.

Although China stopped short of specifying when the limit would be raised or by how much, if implemented, it could be considered a ‘game-changer’ for life companies and asset managers looking to gain more clout in their mainland ventures.

"China commits to gradually raise the permitted equity holding of qualified foreign financial institutions in securities and mutual fund companies," said Hammond and Kai after their trade meeting on Thursday.

They added that the China Insurance Regulatory Commission (Circ) was "willing to work towards increasing foreign ownership of life insurance companies conducting business in China”.

The announcement follows a more general relaxing of Chinese restrictions on Sino-foreign joint ventures, underpinned by moves to create more channels for foreigners to buy Chinese stocks, bonds and launch fund products onshore.

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Monira Matin

Senior Reporter

Monira joined International Adviser in March 2016 from Informa Global Markets where she worked as a eurobond reporter for over two years, covering fixed income markets. She has previously held a number of editorial positions covering politics, insurance and technology. Monira has a degree in Journalism and Economics from City University.

Features

Critical illness cover the next big opportunity for advisers

Critical illness cover the next big opportunity...Lock icon

Imagine your client owned a goose that laid a golden egg every month, says Chris Bagnall, chief underwriting officer and head of claims at Zurich International Life.

Analysis

Profiles

Directories

Canada Life International Limited
Canada Life International...

Canada Life International Canada Life House,...

Tweets

Events

IA International Portfolio Bond Forum Leeds 2017
IA International Portfolio Bond Forum Leeds 2017

Thursday 27 April
Thorpe Park Hotel, Leeds

IA Best Practice Adviser Awards UK 2017
IA Best Practice Adviser Awards UK 2017

3 May 2017
Waldorf Hilton, London

IA Product & Service Awards 2017
IA Product & Service Awards 2017

Wednesday 3 May 2017
The Waldorf Hilton, London 

IA International Portfolio Bond and Financial Planning Forum 2017

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...