China tightens shareholding rules on insurersBusiness | Tracy Hu 8 Mar 2018
China's insurance regulator yesterday greatly expanded rules that govern shareholding in the country's insurers in a bid to make ownership structures more transparent.
Under the new rules, an insurance company should have clear and reasonable shareholding structure and must reveal the actual controlling entity to the regulator. The rules, effective from April 10, cover requirements for the qualifications and conduct of shareholders and the management of stock rights.
Also under the new rules, a single shareholder cannot control more than one third of an insurance firm's registered capital, while investors cannot entrust others to hold shareholding in an insurer.
Insurance premium income in China hit 3.66 trillion yuan (HK$4.52 trillion) at the end of last year, up 18.16 percent from the end of 2016. Total premium income in 2016 rose 27.5 percent from a year earlier to 3.1 trillion yuan, marking the fastest pace of growth since 2008.