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Chinese insurers required to report equity investments to regulator |
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Written by Administrator
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Wednesday, 12 July 2006 |
BEIJING, July 12 (InfoChina) – Insurance companies in China are required to report their long-term equity investments in time to the China Insurance Regulatory Commission (CIRC), the regulator of the industry, according to a document issued by CIRC on July 10.
The document, titled the Circular on Matters Related to Strengthening Financial Supervision over Subordinate Domestic Non- Insurance Economic Entities and Overseas Insurance Units of Insurance Organizations, marks the establishment of three supervision systems: a system of recording at the CIRC concerning the long-term equity investment management systems of insurance companies; a system of reporting to the CIRC concerning significant financial decisions and matters related to long-term equity investments of insurance companies; and a regular reporting, external audit and supervision examination system concerning the financial reports of insurance companies’ subordinate domestic non-insurance economic entities and overseas insurance units.
All along, the supervision of the CIRC has not covered the domestic non-insurance economic entities and overseas insurance units of Chinese insurance companies and the new document is to establish a system for supervision over such economic entities.
Chinese insurance companies have newly been approved to invest in domestic banks, securities companies and overseas insurance organizations, and their related investments are expected to increase accordingly.
The document requires the insurance companies to make reports on the aforesaid equity investments in the preceding year prior to April 30 every year.
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