Newsletter - Broader Access Given to Foreign Banks and Insurers in China
On 30 September 2019, the State Council of the People’s Republic of China announced its decision (the “State Council Decision”) to revise the current Administrative Regulations on Foreign-invested Insurance Companies (“FII Regulations”) and the Administrative Regulations on Foreign-invested Banks (“FIB Regulations”), with the aim to further open-up to foreign investors the financial industry of China.
As of the end of June 2019, foreign banks have set up in China 41 foreign-invested independent legal entities, 116 branches and 151 representative offices; while foreign insurance companies have set up in China 59 foreign-invested independent legal entities and 131 representative offices.
Following the revisions brought by the State Council Decision, it would be easier for foreign banks and insurance companies to make investment and conduct business operation in China.
Notwithstanding, in order to implement the revised FII Regulation and FIB Regulation, CBIRC will further amend the Implementing Rules of the FII Regulation and the Implementing Rules of the FIB Regulation respectively, which should give a more detailed guideline in practice.
See an analysis on the topic by our Corporate - M&A Department