The State Council recently amended the Regulations of the People's Republic of China on Administration of Foreign-funded Insurance Companies and the Regulations of the People's Republic of China on the Administration of Foreign-funded Banks, in a bid to step up the opening-up in the finance sector.
According to the amendments, the China Insurance Regulatory Commission (CIRC) in a range of articles of the Regulations of Foreign-funded Insurance Companies has been tweaked to be an insurance supervision regulatory institution affiliated to the State Council.
The newly added article 40 states that foreign insurance group companies are allowed to establish foreign-invested insurance companies in China.
The newly added article 41 stipulates that overseas financial institutions are allowed to become shareholders of foreign insurance companies.
In terms of the Regulations of the Foreign-funded Banks, the second item of article 10 has been deleted.
Article 25 has also been revised. Foreign banks are allowed to set up foreign-owned banks and foreign bank branches in China, and they are also entitled to establish joint-venture banks and foreign bank branches.
The new rules also apply to Taiwan-funded financial institutions.
The amended regulations shall become effective on the date of release.