Legislation roundup: Negative Lists and online insurance
July 03, 2020 | BY
Susan MokForeign investors are allowed controlling shareholding in securities companies, futures companies and life insurance companies according to the 2020 national and FTZ negative lists. Insurance companies are required to keep records of online insurance transactions.
FDI
Special Administrative Measures for Foreign Investment Access (Negative List) (2020 Edition)
The whole financial industry section is removed from the 2020 edition of the national negative list meaning foreign investors are allowed to hold more than 51% of equity in securities companies, futures companies and life insurance companies.
The following are also removed:
- the equity percentage restriction on foreign investors in the manufacture of commercial vehicles;
- the requirement that the Chinese party shall have a controlling interest in the construction and operation of urban water supply and discharge pipe networks in cities with populations of at least 500,000 people; and
- the prohibition of investment in the smelting and processing of radioactive minerals, and production of nuclear fuel.
However, foreign investors are not allowed to invest in the construction or operation of airport control towers.
Special Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2019 Edition)
According to the 2020 FTZ negative list, foreign investors are no longer prohibited from investing in the application of techniques for the processing of soft lozenges of Chinese traditional medicines, such as steaming, parching, frying and calcining, and the production of secret formulations of proprietary Chinese traditional medicines.
Further reading
Insurance
China Banking and Insurance Regulatory Commission, Circular on Regulating the Administration of the Traceability of Online Insurance Sales
Insurance companies and insurance intermediary firms are required to record and store transactions involving the sale of insurance products conducted on the online platform operated by them by means such as sales page management and sales process recording, so that the same are available for review.
Further reading
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