China to make it easier for foreign life insurers to buy domestic firms

Britain’s Prudential and Canada’s Sun Life Financial and Aviva have been in China for decades, but their collective market share remains below 10% as a result of ownership curbs and limited geographical presence

HONG KONG: China plans to make it easier for foreign life insurers to make controlling acquisitions and large equity investments in domestic peers, five people with knowledge of the matter said, as the country pushes ahead in opening up its financial sector.

The plan being drafted by the sector regulator is also part of Beijing’s efforts to bolster the capital levels of small and mid-sized local players, sources said, amid concerns about the impact of the new coronavirus pandemic on their financial foundations.