China Regulators Remove Restrictions on Insurance Fund Investment
China
December 11 2020
On November 12, 2020, the China Banking and Insurance Regulatory Commission (“CBIRC”) issued a new rule with regard to removing industry restrictions on financial equity investment by insurance companies. The newly released Notice on Matters Related to Insurance Fund Financial Equity Investment (the “Notice”) took effect on November 12, 2020 and is consistent with the speech made by China Premier Li Keqiang on July 15, 2020, calling for the “cancellation of industry restrictions for insurance funds undertaking financial equity investment.” Chinese insurance companies are some of the biggest in the world by market capitalization. This new Notice is undoubtedly good news to relevant industries and companies.