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China tightens regulation on insurance company ownership structure

Thursday, December 29, 2016 - 18:55

[BEIJING] China's insurance regulator said on Thursday it has tightened regulations on insurance companies'ownership structure to prevent risk.

The upper limit of a single shareholder's stake in an insurance company will be lowered to one-third, from 51 per cent presently, to prevent any improper transfer of benefits, the China Insurance Regulatory Commission (Circ) said in a draft document released on its website.

Circ also said its draft rules will forbid insurers to use wealth management funds to invest in themselves.

REUTERS

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