【Financial Str. Release】Shanghai to establish int’l reinsurance trading market, NAFR official

This photo taken on Nov. 4, 2022 shows an evening view of the Lujiazui area in east China's Shanghai. (Xinhua/Wang Xiang)

BEIJING, June 1 (Xinhua) -- China's new financial regulator and Shanghai municipal government will jointly promulgate detailed rules to foster construction of Shanghai international reinsurance center, reported Xinhua-run China Securities Journal citing an official with the National Administration of Financial Regulation (NAFR) on Thursday.

Zhang Zhongning, deputy head of the general office of NAFR said at a news briefing of Shanghai municipal government held on May 31 that a global-oriented international reinsurance transaction market will be formally established in Shanghai together with clear construction path and related supports for the Shanghai international reinsurance center.

In October 2021, the former China Banking and Insurance Regulatory Commission and Shanghai municipal government released the guiding opinions on construction of Shanghai international reinsurance center.

The core of its construction framework is the international reinsurance transaction market. In the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, an international reinsurance functional zone is blueprinted to provide inward reinsurance related services such as centralized registration, trading, clearing and settlement, information disclosure, and credit management. 

Under the principle of high level opening-up, a set of rules in line with comparable international standards will be set up and construction of the Shanghai international reinsurance center will be closely integrated with the opening-up of the Lin-gang Special Area.

Insurance entities at home and abroad that establish reinsurance operation centers or trading seats for international reinsurance business platforms in the functional zone can enjoy special policies such as fiscal and tax incentives.

NAFR will continuously guide various foreign-funded financial institutions to settle in Shanghai, noted Zhang.

Currently, there are more than 50 foreign-funded banks and insurers, over 100 foreign-funded provincial-level branches and more than 70 representative offices of foreign-funded insurers in Shanghai. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)