Nov 26, 2018 (China Knowledge) - China Banking and Insurance Regulatory Commission (CBIRC) has approved two more foreign financial institutions to enter the domestic Chinese market and set up local subsidiaries.
German insurer Allianz Group has been cleared by the CBIRC to set up the country's first foreign insurance holding company while Chiyu Bank from Hong Kong has also been approved to open a branch in Shenzhen.
With this, the CBIRC has approved 12 foreign financial institutions to set up in mainland China and will continue to open up the country's financial sector while improving its risk prevention and supervision capabilities.
The move by the CBIRC was lauded by Allianz's chief executive as a significant milestone and also stated that he expects the holding company to be established by 2019. The regulator had first issued guidelines last year to increase foreign investment into China's financial sector by reducing red-tapism and given foreign firms a level playing field to compete against their local peers.
Earlier this month during the China International Import Expo (CIIE), President Xi Jinping promised to further open the country's financial markets, boost imports and offer greater protection of intellectual property rights.
The CBIRC has also approved Taiwan's Fubon Bank ICBC-AXA Assurance Co., and Korean Reinsurance Co. Ltd. to set up local subsidiaries.
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