Photo taken on May 4, 2022 shows an employee of Ping An Asset Management Co., Ltd. walking in the Ping An financial building in Shanghai.
BEIJING, Aug. 8 (Xinhua) -- Chinese regulator released on August 5 new rules to strengthen supervision and boost high-quality development of the insurance asset management sector, reported Xinhua Finance.
China Banking and Insurance Regulatory Commission (CBIRC) unveiled the new administrative rules on insurance asset management companies (AMCs) on its website, saying the rules contain seven chapters including a newly-added one for corporate governance and will take effect as from September 1 this year.
Currently, insurance AMCs in China manage more than 20 trillion yuan of assets in total and have been the core management institutions for long term capital such as insurance capital, the main institutional investors for China's capital market and an important contributor in serving the real economy.
To better guide development of the sector, CBIRC added a new chapter on corporate governance, put risk management-related content as an independent chapter, optimized equity structure design, improved business operation principles and related requirements, and added regulatory and supervisory methods and means and constraint on violations as well.
To further foster opening up, the rules cancel ceiling on the proportion of equities held by overseas insurers in domestic insurance AMCs and set unified qualification requirements for domestic and overseas shareholders, helpful to attract competitive international insurers and AMCs to participate in development of China’s insurance asset management sector.
To encourage independence and development of higher quality of insurance AMCs, the rules require domestic and overseas insurer shareholders holding altogether no less than 50 percent of equities in an insurance AMC, which ensures insurance AMCs as the core insurance capital managers and at the same time leaves leeway for drawing excellent overseas insurers and AMCs to invest in insurance AMCs in China.
CBIRC said the new rules will help cultivate more institutional investors with stable investment style to contribute to the healthy development of capital market and high quality development of the real economy. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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