China Banking and Insurance Regulatory Commission issued seven opening measures： encouraging overseas financial institutions to invest in wealth management subsidiaries.

　　According to the website of China Banking and Insurance Regulatory Commission, China Banking and Insurance Regulatory Commission continues to promote the opening of banking and insurance industry to the outside world, optimize the business environment for foreign investors in the financial sector, enrich market supply, enhance market vitality, enhance competitiveness and promote the healthy development of China’s financial industry. Recently, seven new policies and measures for opening to the outside world have been studied and released.

　　I. Encourage overseas financial institutions to participate in the establishment and investment of financial subsidiaries of commercial banks.

　　The Measures for the Administration of Financial Subsidiaries of Commercial Banks clearly stipulates that financial subsidiaries of banks can be wholly-owned by commercial banks, or jointly funded with domestic and foreign financial institutions and domestic non-financial enterprises. Introducing foreign financial institutions with expertise and international influence in wealth management and investing in bank wealth management subsidiaries is conducive to introducing advanced and mature investment concepts, business strategies, incentive mechanisms and compliance risk control systems in the international asset management industry, further enriching the supply of financial products, stimulating the vitality of market competition and promoting the healthy and orderly development of China’s bank wealth management business. China Banking and Insurance Regulatory Commission will guide qualified and willing banks to strengthen active contact with relevant foreign-funded financial institutions, and continue to encourage and guide bank wealth management subsidiaries to do a good job in introducing foreign capital.

　　Two, allow overseas asset management institutions and subsidiaries of Chinese banks or insurance companies to set up a foreign-controlled wealth management company.

　　China’s asset management market has a huge scale and development potential, and it is difficult for existing asset management institutions to fully meet the rapidly growing diversified market demand. Compared with international advanced asset management institutions, most of the asset management institutions of Chinese banks and insurance companies, including wealth management subsidiaries, have been established for a short time and have less experience. At present, Chinese banks, insurance companies and foreign advanced asset management institutions are mainly engaged in business cooperation, allowing joint ventures to set up foreign-controlled wealth management companies, which is conducive to introducing international advanced asset management practices and professional experience, promoting the steady development of asset management industry and capital market, giving play to the respective advantages of Chinese and foreign asset management institutions, further enriching market players and business products, and meeting the diversified service needs of investors. At the same time, the existing asset management subsidiaries of Chinese banks and insurance companies can complement each other with their foreign wealth management companies, and develop at a moderate dislocation.

　　Overseas asset management institutions and subsidiaries of Chinese banks or insurance companies are allowed to jointly set up foreign-controlled wealth management companies. In the early stage, pilot methods can be adopted to give priority to supporting the entry of mature and stable wealth management institutions recognized in foreign markets. Both RMB funds can be raised and some foreign currency long-term funds can be raised. In the pilot process, China Banking and Insurance Regulatory Commission will pay more attention to the professionalism, prudence and stability of supervision, pay more attention to the supervision after the event, guide the steady development of institutional compliance through on-site inspection and off-site supervision, sum up the pilot experience in a timely manner, and study and expand the pilot scope in a timely manner.

　　Three, allow overseas financial institutions to invest in the establishment and shareholding of pension management companies.

　　At present, China’s pension management market is dominated by the second pillar enterprise annuity fund management, with limited scale and growth. However, the domestic pension management company is still in the pilot stage, and the pilot adopts the method of one mature company and one approved company. There is only one Jianxin pension management company established by CCB. Allowing foreign investors to set up pension management companies is conducive to increasing the types of subjects, enhancing market vitality, introducing mature pension management experience and improving the level of pension investment management. In the next step, China Banking and Insurance Regulatory Commission will promote the improvement of relevant laws and regulations, and continue to adopt the method of "one mature company, one approved company", and work with relevant ministries and commissions to do a good job in the licensing of pension management companies.

　　Four, support the establishment of wholly foreign-owned or equity money brokerage companies.

　　In 2005, the State Council approved the pilot of money brokerage companies. Since the pilot, five money brokerage companies have been established to actively carry out transactions in foreign exchange market, money market, bond market and derivative products market at home and abroad, which has played a positive role in activating China’s financial market, improving transaction efficiency and reducing transaction costs. At present, the top five money brokerage companies in the world have all participated in the establishment of five money brokerage companies in China through joint ventures.

　　Further increasing the proportion of foreign shares in money brokerage companies is conducive to giving full play to the management advantages of foreign shareholders, improving the operating efficiency of money brokerage companies, promoting orderly competition in the industry, and improving the transparency and transaction efficiency of financial markets. China Banking and Insurance Regulatory Commission actively supports Chinese and foreign shareholders of existing currency brokerage companies to determine their own foreign share ratios on the basis of equal consultation. At the same time, on the basis of comprehensive evaluation of the impact of newly established currency brokerage companies on the existing market competition pattern, we will steadily promote the establishment of new foreign currency brokerage companies.

　　5. Shorten the transition period from 51% to 100% for foreign-funded life insurance companies to 2020.　

　　On July 2, 2019, Premier Li Keqiang delivered a special speech at the opening ceremony of the 2019 Davos Forum, saying that the original stipulation of canceling the foreign life insurance share ratio limit in 2021 would be advanced to 2020. Abolishing the share ratio restriction of foreign-funded life insurance companies will help attract more high-quality foreign-funded insurance institutions to enter the China market, introduce more advanced business concepts and more diversified life insurance products, enhance the vitality of the life insurance market and provide better services for the real economy. In the next step, China Banking and Insurance Regulatory Commission will promote the promulgation of "Regulations on the Administration of Foreign-funded Insurance Companies in People’s Republic of China (PRC)" and other relevant laws and regulations, and timely implement the regulations in relevant administrative licensing work. At the same time, strengthen post-event supervision and maintain market order.

　　Six, cancel the provisions of domestic insurance companies holding the shares of insurance asset management companies shall not be less than 75%, allowing foreign investors to hold more than 25% of the shares.　

　　Loosening the restrictions on the foreign shareholding ratio of insurance asset management companies is conducive to absorbing the experience and practices of excellent overseas insurance institutions, stimulating the vitality of the domestic insurance asset management market, promoting the improvement of the asset management capabilities of insurance asset management companies, and better serving the preservation and appreciation of insurance assets.　

　　In the next step, China Banking and Insurance Regulatory Commission will promptly revise the Interim Provisions on the Administration of Insurance Asset Management Companies and implement the opening-up measures. While opening wider to the outside world, China Banking and Insurance Regulatory Commission will continue to improve the regulatory requirements of insurance asset management companies, strengthen the management of shareholders’ qualifications, further strengthen the continuous compliance requirements of insurance asset management companies, and effectively guard against various risks.　

　　Seven, relax the access conditions of foreign-funded insurance companies, cancel the 30-year operating life requirement.

　　At present, foreign insurance companies to set up foreign-funded insurance companies in China need to meet the requirements of operating insurance business for more than 30 years. In recent years, with the deepening of opening to the outside world, most foreign insurance companies in Fortune Global 500 have entered China and played an active role in the insurance market in China. The cancellation of the 30-year operating life requirement has created conditions for foreign insurance companies with operating characteristics and expertise but insufficient operating life to come to China, which is conducive to further enriching insurance market players and insurance professional services and promoting the high-quality development of the insurance industry.

　　Welcome more qualified foreign insurance companies to set up business offices in China, combine their advanced experience with the reality of China, and promote each other with Chinese companies in the competition to jointly serve the real economy and the increasingly diversified financial service needs of consumers. China Banking and Insurance Regulatory Commission will immediately start the revision of relevant laws and regulations, and put them into practice upon completion.