On 10 Dec. 2021, China Banking and Insurance Regulatory Commission (CBIRC) proposed the “Administrative Provisions on Insurance Asset Management Companies (Draft for Public Comment)” (hereinafter “the Draft”, 保险资产管理公司管理规定(征求意见稿)) for public opinions through 10 Jan. 2022.
An insurance asset management company (AMC) is a financial institution that issues insurance asset management products by accepting the commission of qualified investors like insurance group (holding) companies and insurance companies.
By the end of the third quarter of 2021, a total of 31 insurance asset managers have been present, with their assets under management worth CNY 18.7 trillion (approximately USD $3 trillion). The Draft has strengthened regulations of this huge market.
In responding to media questions, CBIRC indicated that “The Draft offers the same treatment to both foreign and local investors who are shareholders of insurance AMCs, and the ownership by foreign entities should no longer be capped.”
Before the Draft, foreign investors were faced with a 25% ownership cap of Chinese insurance AMCs.
Cover Photo by Linda Yuan on Unsplash
Contributors: CJO Staff Contributors Team
