China issues guidelines to promote high-quality development of insurance sector

Written by Adam Cadle

16/09/2024

China has tightened regulations around its insurance sector to encourage the development of so-called patient capital and to boost investment in the technology sector.

The country’s State Council has issued a 10-point document which also aims to boost the insurance sector’s investment in emerging industries, advanced manufacturing and new infrastructure.

“We need to fully leverage the long-term investment advantages of insurance funds, foster genuinely patient capital, and promote a virtuous cycle between funds, capital, and assets,” the document stated.

Patient capital refers to funds oriented towards the longer term with greater risk tolerance.

To further mitigate and share risks, Beijing will support high-quality foreign insurance institutions in establishing operations in China and encourage qualified foreign entities to invest in domestic insurance firms, according to the new regulations. Additionally, it will urge Chinese insurance companies to steadily expand their overseas business.

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