China tightens regulation on insurance company ownership structure

[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