With the approval of China’s market regulatory agency, a number of overseas financial institutions are preparing to expand their presence in mainland China. The German insurer Allianz Group has received approval for the preparatory foundation of a foreign insurance holding company in China. This is clear from a statement issued by the Chinese Banking and Insurance Supervision Authority (CBIRC) on Sunday.
The company, the „Allianz (China) Insurance Holding Company Ltd.“, will become the first wholly-owned insurance holding company of a foreign insurer in China, the statement said.
„Today’s announcement also follows the positive long-term cooperation between China and Germany, which will enable our Chinese and international clients to leverage Allianz’s comprehensive financial and risk management solutions and services and benefit from the continued growth and liberalization of Chinese financial markets. „said Oliver Bate, Chairman and CEO of
the Allianz Group.
The approval follows a series of measures recently announced by the Chinese government to encourage investment in China by foreign financial insurance institutions, the company said.
The CBIRC said Sunday that Chiyu Banking Corporation Ltd. of Hong Kong Special Administrative Region has been authorized to set up a subsidiary in Shenzhen, Guangdong’s southern province of China.
The regulator said it has been working on measures to further open the Chinese banking and insurance sector since the beginning of the year. In accordance with relevant laws and regulations and from the point of view of risk prevention, the CBIRC has accepted and approved many requests for market access.
The Commission had previously granted ten requests for market access. This includes an application from Fubon Bank (China) Co. Ltd to establish a subsidiary in Chongqing in southwestern China, another from ICBC-AXA Life to prepare the establishment of an asset management company and a third from Korean Reinsurance Company „, Establishing a subsidiary.
„As a next step, China will continue to expand its financial sector exposure while improving its risk prevention and market surveillance capabilities,“ the CBIRC said.