China's insurers to benefit from tighter regulation long term
Tighter regulation of China's insurance industry will benefit Chinese insurers in the long term but create uncertainties for those based in Hong Kong, Credit Suisse analysts have said. The China Insurance Regulatory Commission will cooperate with Hong Kong's new Insurance Authority to crack down on the sale of foreign insurance products on the mainland after the practice was made illegal last year. To reduce outflows of the yuan, authorities also closed websites and social media accounts selling overseas insurance products. However, the tightening rules do not pose a systemic risk to China's insurance sector, the Credit Suisse analysts added.
There is a trend for Chinese to reallocate their wealth from traditional investments in property and banking in response to an ageing population. Photo: AP