China: Interpretation of new administration rules for insurance asset management companies

In brief

After extensive consultation, the China Banking and Insurance Regulatory Commission (CBIRC) issued the Rules on Insurance Asset Management Companies (《保险资产管理公司管理规定》) (CBIRC Decree [2022] No. 2) ("New Rules") 5 April 2022. The New Rules will come into force on 1 September 2022.

Compared with the Interim Provisions on Insurance Asset Management Companies (《保险资产管理公司管理暂行规定》) (CIRC Decree [2004] No. 2) ("Old Rules") and other relevant regulations on the administration of insurance asset management companies, the core changes in the New Rules are as follows.


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The abolition of restrictions on the shareholding ratio of foreign investors in insurance asset management companies

As early as 20 July 2019, the office of the Financial Stability and Development Committee of the State Council announced 11 measures to promote the opening up of the financial sector, including "to cancel the requirement that total shares of an insurance asset management company held by domestic insurance companies shall not be lower than 75%, and allow foreign investors' stake to exceed 25%." After that, Allianz Insurance Asset Management Company Limited, the first wholly foreign-owned insurance asset management company in China, was established. The New Rules also cancel the requirement that the total shares of an insurance asset management company held by domestic insurance companies shall not be lower than 75% in the Old Rules, and further clarify that the total shareholding ratio of domestic and foreign insurance group (holding) companies and insurance companies in insurance asset management companies shall exceed 50%.

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