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New Regulations Allow Chinese Insurance Companies to Invest Overseas

Washington, DC, September 7, 2004 - The China Insurance Regulatory Commission (CIRC) has adopted regulations that, for the first time, will allow Chinese insurance companies to invest their foreign currency assets offshore and to appoint foreign fund managers to manage their offshore investments.

Background
The Chinese government has taken a number of steps over the past several years to open Chinese securities markets to foreign investors, starting with China's accession into the World Trade Organization (WTO) in late 2001. China has also adopted a qualified foreign institutional investor (QFII) regime that allows foreign investors access to China's A-share market for the first time.

The latest insurance regulations were adopted in August 2004 and state that foreign fund managers must meet a number of qualification standards to be eligible to manage insurance company assets, including a $60 million minimum net capital requirement, a $50 billion minimum assets under management requirement, and ten years of international experience in the asset management business.

ICI Position
The Institute regularly works with representatives of foreign nations and U.S. government officials to seek legislative and regulatory improvements that enhance both the competitiveness of U.S. money management firms abroad and the level of service to investors in foreign markets. In the Asian marketplace, the Institute’s efforts have focused on reducing barriers to U.S. advisers seeking to offer investment company products in Asian countries.

Related Links
In addition to the links below, a section of this website is devoted to global developments impacting funds and their shareholders.