IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jun 2014 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 21 March 2014, the China Insurance Regulatory Commission ("CIRC") issued the Administrative Measures of Acquisitions and Mergers of Insurance Companies (Baojianfa'2014' No.26).
 
Through article 32 of the new regulation, foreign investors are required to meet the qualifications stipulated in article 8 of the Regulation on the Administration of Foreign-funded Insurance Companies if the foreign investors hold more than 25 percent of the shares after the M&A.
 
Prior to the new regulation, this qualification only applied to foreign insurance companies which intended to establish a Chinese insurance firm directly. The present legeslation thus extends this treatment to mergers and acquisitions.
 
Article 8 of the Regulation on the Administration of Foreign-funded Insurance Companies stipulates the following requirements to establish a foreign or jointly owned insurance company in China:

  1. Insurance business experience exceeding 30 years.
  2. Established branches in China for more than 2 years.
  3. Assets no less than 5 billion USD at the end of the year preceding the application.
  4. The investor shall come from a jurisdiction with well-established insurance law and regulation as well as effective monitoring by its authorities.
  5. Solvency accoring to the requirement appied in his home country.
  6. Permission for the sought operation from his home country.
  7. Fulfill the regulatory requirements of the CIRC.

 

AFFECTED COUNTRIES

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