ANNOUNCEMENT 21 Mar 2014In March 2014, the government of China announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
China Insurance Regulatory Commission: http://www.circ.gov.cn/web/site0/tab5225/info3912625.htm (??)
FN1: Ernst & Young: http://www.ey.com/Publication/vwLUAssets/EY-Regulations-on-the-acquisition-and-merger-of-Chinese-insurance-companies/$FILE/EY-Regulations-on-the-acquisition-and-merger-of-Chinese-insurance-companies.pdf
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: