Deacons
  March 2, 2007 - Hong Kong

China: Details of CIRC draft rules

The China Insurance Regulatory Commission (CIRC) has introduced the draft Regulatory Measures on Offshore Investment of Insurance Assets (Draft Measures) which replace the provisional rules issued in 2004.

The proposed new regime will primarily have the following impact on overseas investment managers acting or intending to act for Chinese insurance companies:

• managers will be required to seek approval from CIRC independently before they may act for insurance companies;

• the CIRC proposes to supervise such approved Managers on continuous basis and to conduct annual appraisal on the qualifications of such Managers; and

• the permitted investment scope of insurance funds has been broadened to include global equities and investment funds (previously investment in equities were limited to those issued by Chinese companies).