Majority foreign ownership in Chinese insurance ventures likely

Foreign investors in Chinese joint venture life insurance firms are expected to be allowed to hold up to 51% of equity based on the latest draft regulatory amendments under consideration.

According to a report by The Paper, the current ceiling ratio for foreign capital in a jointly owned life insurance company is only 50%.

If the new rules are approved, then it means that foreign investors will be able to take a majority — hence controlling — stake in a joint insurance venture.

As well as raising the ceiling, the draft amendment has also removed the minimum requirements for registered capital or working capital of foreign-funded insurance companies, and so eases the restrictions and simplifies the procedures in the establishment of local branches.

This post was syndicated from InsuranceAsia News. Click here to read the full text on the original website.

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