NFRA Grants Approval for Insurance Ventures
China’s National Financial Regulatory Administration (NFRA) has officially approved new ventures in the insurance sector by BNP Paribas and Prudential Financial. BNP Paribas, in partnership with Volkswagen Financial Services, will establish a property insurance company in Beijing. Prudential Financial will set up an insurance asset management firm in the capital as well. Li Yunze, the head of NFRA, announced these developments during the Annual Conference of the Financial Street Forum 2024 on Friday.
Steps Toward Financial Sector Openness
Li emphasized that this approval is part of China’s broader strategy to open up its financial sector. He stated, “Opening-up is a defining feature of Chinese modernization and an important force behind the reform and development of China’s financial industry.”
The official highlighted China’s attractiveness as a destination for global investment, promising that the country will continue to expand its financial market. “With higher standards, greater strength, and more forceful measures, we strive to build a market-oriented, rule-of-law-based, and internationalized business environment, promoting high-level opening-up of the financial sector,” Li added.
Enhancing Market Connectivity
Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), also spoke at the forum. He stated that the CSRC is committed to enhancing institutional openness in markets, institutions, and products. The goal is to deepen the connection between domestic and international markets, expand opportunities for overseas listings, and encourage more foreign institutions to operate in China.
Wu assured attendees, “We will further strengthen the stability, transparency, and predictability of policies, striving to make various types of capital ‘willing to come, stay, and develop well.’”
Continued Financial Reforms
In recent years, China has introduced over 50 measures aimed at opening its financial sector. These include removing foreign ownership limits in banking and insurance and lowering entry barriers for foreign investors.
Currently, all 30 global systemically important banks have branches in China, and nearly half of the world’s top 40 largest insurance companies are operating in the Chinese market, as reported by Xinhua News Agency.
Related topics:
