China to allow M&A in insurance industry for the first time

[CityFarmer]

Banks are not the only one involve in shadow banking, insurance companies are also involve. The market consolidations in China, create quite a bit of opportunities, not only in finance sector, but in shipping and property...

China to allow M&A in insurance industry for the first time
08 Apr 2014 12:16
[SHANGHAI] Insurers in China, including Chinese-based foreign insurers, will be allowed to acquire and merge with each other for the first time in a step to strengthen the industry, according to new rules issued by the country's insurance regulator.

The rules will allow weaker players to be absorbed by stronger firms, according to a statement published on the China Insurance Regulatory Commission's (CIRC) website and dated last Friday. "The new rules are aimed at promoting an optimal structure for the insurance industry and enhancing competitiveness...," a CIRC spokesman said in a separate statement on the website.

Rapid growth in China's insurance industry and investment into risky local infrastructure and housing projects have weakened the position of smaller insurers in particular, according to Bernstein research. -Reuters

Source: Business Times Breaking News