Tuesday, December 12, 2017

China to heighten insurance scrutiny

Investments and capital flows in and out of China’s insurance industry will be overseen more closely, the country’s regulator announced.

The China Insurance Regulatory Commission (CIRC) also said it will encourage players to strengthen their risk-monitoring systems.

According to Guo Jing, vice head of CIRC’s finance and accounting department, the commission will aim to improve its scrutiny of the use of insurance funds, focusing on chaotic activities like irrational stock market fundraising and overseas acquisitions.

Guo said the main focus now is to ward off risks arising from excessive growth in overseas investments through window guidance from the government and enhanced information disclosure.

Meanwhile, the country’s central bank is coming up with a spate of reforms that will allow foreign investors greater access to China’s financial services sector.

The bank will convene an internal meeting today discuss proposals and get feedback from Chinese institutions.

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