An Allianz building Photo: VCG
China's National Financial Regulatory Administration (NFRA) has greenlighted German investment firm Allianz Global Investors GmbH's investment in Chinese insurance firm Guomin Pension & Insurance Co,
MK socks the latest move in China's opening-up of the financial sector.
The Global Times learned on Monday that the NFRA recently approved Guomin Pension & Insurance Co's change in registered capital, with Allianz Global Investors being added as a new shareholder. Allianz Global Investors will spend about 284 million yuan ($39.04 million) to buy 228 million shares in the insurer. After the deal, Allianz Global Investors will have a 2 percent stake in the firm.
Allianz's investment in the newly established professional Chinese insurer underscores those foreign institutions' efforts to continue to increase investment in China's pension finance market while displaying their full confidence in China's long-term economic growth prospects, Cao Yong, chief actuary of Guomin Pension & Insurance Co, previously told the Global Times.
China's financial opening-up has seen steady progress in recent years, with the number of foreign-funded firms posting a fast increase and foreign investment in China's financial markets reporting notable growth, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Monday.
The Central Financial Work Conference held last year stressed to make significant efforts in the areas including pension finance.
Xi Junyang said more foreign investors who want to catch strategic opportunities in China's pension finance will expand investment in the country in the future.
China has implemented over 50 financial opening-up measures in recent years, including eliminating foreign ownership limitations in the banking and insurance sectors and lowering access criteria for foreign investors. Currently, 30 global systemically important banks all have branches in China, and nearly half of the world's top 40 insurance companies are operating in the Chinese market, according to the NFRA.
During the Annual Conference of Financial Street Forum 2024 held in Beijing in October, Li Yunze, head of the NFRA, announced that the NFRA has greenlighted BNP Paribas and Volkswagen Financial Services to jointly set up a property insurance company in Beijing. Additionally, Prudential Financial has also received approval to establish an insurance asset management firm in Beijing.
