About HKTDC | Media Room | Contact HKTDC | Wish List Wish List () | My HKTDC |
繁體 简体
Save As PDF Print this page
Qzone

China Approves Overseas Ownership of Mainland Insurance and Fund Management Firms

As part of ongoing moves to open up its financial sector, China has given the go-ahead for 100% overseas ownership of mainland-based insurance and fund management firms. In order to facilitate this, it has had to amend two sets of regulations – The Regulations on the Administration of Foreign-funded Insurance Companies and The Regulations on the Administration of Foreign-funded Banks.

Key details of these amendments, which have come into immediate effect, are listed below:

Regulations on the Administration of Foreign-funded Insurance Companies

  • The requirements that overseas insurance companies applying to establish foreign-funded insurance companies should have been active in the insurance sector for more than 30 years and have maintained a representative office on Chinese territory for more than two years are both rescinded
  • Foreign insurance groups are now permitted to invest in and establish overseas-funded insurance companies on Chinese territory, with non-mainland financial institutions also permitted to hold a stake in overseas-funded insurance companies

Regulations on the Administration of Foreign-funded Banks:

  • The requirement that the total assets of the sole or controlling shareholder of the proposed wholly foreign-owned bank, the sole or major foreign shareholder of the proposed Sino-foreign joint-venture bank, and the foreign bank of the proposed branch at the end of the year prior to the submission of application for establishment should match or exceed a pre-designated level is rescinded. The requirement that the sole or primary Chinese shareholder in a proposed Sino-foreign joint venture bank shall be a financial institution is also rescinded
  • Foreign banks are now permitted to both establish wholly overseas-owned banks and branches of foreign banks on Chinese territory and to establish branches of Sino-foreign joint venture banks and foreign banks

Full details of the amendments of the Regulations on the Administration of Foreign-funded Insurance Companies and the Regulations on the Administration of Foreign-funded Banks can be found in Decree No. 720 of the State Council, as recently approved by Chinese Premier Li Keqiang.

Source: State Council

Content provided by Picture: HKTDC Research
Comments (0)
Shows local time in Hong Kong (GMT+8 hours)

HKTDC welcomes your views. Please stay on topic and be respectful of other readers.
Review our Comment Policy

*Add a comment (up to 5,000 characters)