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China tightens regulation on insurance company ownership structure
December 29, 2016 / 9:47 AM / a year ago

China tightens regulation on insurance company ownership structure

BEIJING, Dec 29 (Reuters) - China’s insurance regulator said on Thursday it has tightened regulations on insurance companies’ ownership structure to prevent risk.

The upper limit of a single shareholder’s stake in an insurance company will be lowered to one-third, from 51 percent presently, to prevent any improper transfer of benefits, the China Insurance Regulatory Commission (CIRC) said in a draft document released on its website.

CIRC also said its draft rules will forbid insurers to use wealth management funds to invest in themselves. (Reporting By Shu Zhang and Beijing Monitoring Desk; Editing by Muralikumar Anantharaman)

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