China welcomes foreign insurance and banking investments
China has reviewed the regulations of its insurance and banking sectors in order to open up the market to foreign investors
According to a government statement issued on Wednesday 16 October, the State Council has authorised revisions to the regulations on foreign-invested insurance and banking firms, which include improving the supervision of foreign banks’ local branches, and lifting previous restrictions on company establishment, shareholder status and business expansion.
This means that foreign investors can establish branches and wholly-owned foreign banks on the Chinese mainland, as well as simultaneously setting up branches and Sino-foreign joint ventures.
As far as insurers go: “[Specific management measures] shall be formulated by the insurance regulatory authority under the State Council in accordance with the principles of these [revised] regulations.”
The new regulations come into effect immediately.