ANNOUNCEMENT 08 Jun 2013In June 2013, the government of China announced a rule change for commercial cross-border financial flows.
NUMBER OF INTERVENTIONS
State Council, Chinese Version Available:
On June 8, 2013, Chinese government released the Regulations on Administration of Foreign Invested Insurance Companies (Revised Version) which will come into effect on August 1, 2013.
In accordance with this Revised Version, foreign insurance companies are allowed to use RMB denominated income to make capital injections into their joint ventures or into wholly foreign-owned subsidaries, and to allocate working capital to branches within China.
Before the adoption of this Revised Version, foreign insurance companies were only permitted to use freely convertible currencies to conduct capital injections or allocation of working capitals in China. The Revised Version cancelled this restriction, thus facilitating foreign investment in the Chinese insurance sector.