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China warns mainland residents against buying insurance products in Hong Kong

[BEIJING] China's insurance regulator issued a warning to mainland residents on Friday about purchasing insurance products in Hong Kong.

The China Insurance Regulatory Commission (CIRC) said in a statement posted on its website that insurance products issued by Hong Kong insurers were not protected by mainland laws.

Investors also face potential interest rate and foreign exchange policy risks, and there were uncertainties about the yields from these insurance products, the regulator said.

Reuters reported in March that China had further tightened restrictions on purchases of Hong Kong insurance products by mainland investors, sources said, narrowing another loophole in the capital account seen as a potential gateway for capital flight.

REUTERS