Germany’s Allianz gains approval to set up first wholly foreign-owned insurance subsidiary in China

Source:Global Times Published: 2018/11/25 13:33:39

China has granted German insurer Allianz permission to set up the first wholly foreign-owned insurance holding company in the country, the banking and insurance regulator said Sunday.

Allianz said the company is expected to establish the subsidiary in 2019, adding that China is the central part of Allianz's Asian strategy.

Wang Jun, deputy director of the Department of Information at the China Center for International Economic Exchanges, told the Global Times on Sunday that "the move is in line with the country's broad efforts to open up its fast-growing insurance sector, after a serious of measures announced since the beginning of the year."

"China's banking and insurance sector, with its great potential and vast market, is quite attractive to foreign investors, and many of them have applied to set up local subsidiaries since China relaxed restrictions in the sector," Wang said.

"More permits will be issued to foreign companies in the future," Wang said.

According to a statement on the official website of the China Banking and Insurance Regulatory Commission (CBIRC), the regulator has recently given approval to 10 financial institutions, including Taiwan's Fubon Bank, ICBC-AXA Assurance Co, and the Korean Reinsurance Co, to set up local subsidiaries.

Hong Kong's Chiyu Bank also received approval for a branch in Shenzhen, South China's Guangdong Province on Sunday, said the statement.

The CBIRC said it will continue to promote the implementation of various opening-up measures in the banking and insurance industry, while at the same time improving its risk prevention and supervision capabilities in the future.

Posted in: ECONOMY

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