CHINA’S REGULATOR TO TIGHTEN RULES ON INSURER IPO’S

The China Insurance Regulatory Commission (CIRC) has issued draft regulations to limit insurers’ ability to raise funds via the stock market, according to the Shanghai Securities News . The regulator is proposing that any insurer looking to launch an initial public offering (IPO) must first seek regulatory approval, which will be dependant on the insurer demonstrating its ability to pay claims and having had no regulatory breaches for at least three years. This latest proposal follows yesterday’s news that CIRC is seeking to limit the level of foreign investment in Chinese insurers, preventing investment by overseas firms in more than one domestic insurer in a specific market. The proposed rule change on IPOs comes shortly after a multi-billion dollar share offering by Ping An, the country’s second largest insurer, that pushed down the value of China’s equity market by 34% during the first quarter, although CIRC denies that the two events are linked.