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BEIJING, Nov 30 (Reuters) – China’s banking and insurance policy regulator on Tuesday issued new procedures governing the possibility management of insurance coverage teams, which will step up supervision, restrict holdings of non-core units and regulate their investments in other businesses.
The go is aimed at curbing possibility in the sector and pushing insurance policy teams “to target on the main business, improve their equity expenditure management … and to control disorderly growth of capital,” the China Banking and Insurance coverage Regulatory Commission (CBIRC) said.
The procedures were being up-to-date from a 2010 model to adapt to important alterations in equally the development of insurance groups over the a long time and the exterior ecosystem, CBIRC included in a assertion on its site saying the changes.
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China has been toughening up rules for its huge and systemically vital monetary institutions, which include banks and economical holding companies, in the earlier two years to boost hazard administration in its fiscal process and control systemic danger.
The current regulations for insurance policy groups are also aimed at paving the way for the regulation of country’s systemically significant insurance policy corporations, the CBIRC explained in a separate statement also unveiled on Tuesday.
China has 13 massive insurance groups with a complete asset of 22 trillion yuan ($3.45 trillion) less than management as of conclude 2020, dominating the insurance coverage market place, it reported.
(This tale corrects whole belongings of 13 insurance coverage teams to 22 trillion yuan, not 2.2 trillion yuan, in paragraph 6)
($1 = 6.3714 Chinese yuan renminbi)
($1 = 6.3706 Chinese yuan renminbi)
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Reporting by Cheng Leng and Ryan Woo Editing by Louise Heavens and Jan Harvey
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