In a speech at the 2025 Lujiazui Forum, the China Banking and Insurance Regulatory Commission set out priorities to deepen China’s high-level financial opening in banking and insurance and announced that it will jointly publish an action plan with the Shanghai municipal government to support Shanghai’s development as an international financial centre. It also highlighted recent approvals for AIA Life and Netherlands Global Life to establish insurance asset management companies in Shanghai. The commission noted that most restrictive measures in the banking and insurance sectors have largely been removed and indicated it will replicate and scale up free trade zone and free trade port opening practices, support foreign institutions’ participation in additional business pilots, and explore wider opening aligned with high-standard international trade agreement rules. Measures to improve the operating environment for foreign institutions include accelerating financial rule-of-law development, strengthening policy transparency and predictability, establishing a regular communication mechanism, and adjusting policies to reflect foreign firms’ business models and risk profiles; the speech cited foreign bank and insurer assets exceeding CNY 7 trillion and foreign insurers’ premium market share rising to 9% from 4% in 2013. On cross-border stability, it pointed to ongoing implementation of Basel III and new insurance accounting standards, alongside stronger bilateral and multilateral supervisory coordination and crisis-management cooperation. The Shanghai action plan is expected to include innovation pilots in areas such as technology finance and cross-border finance, support for eligible national banks to set up financial asset investment companies in Shanghai, exploration of a “Shanghai model” for registration of non-monetary trust assets such as real estate and unlisted equity, and steps to enhance Shanghai’s international reinsurance and marine insurance underwriting capacity and global service capabilities.
China Banking and Insurance Regulatory Commission 2025-06-18
China Banking and Insurance Regulatory Commission signals further institutional financial opening and a forthcoming action plan with Shanghai
At the 2025 Lujiazui Forum, the China Banking and Insurance Regulatory Commission announced a joint action plan with the Shanghai municipal government to bolster Shanghai as an international financial centre. The plan includes innovation pilots in technology and cross-border finance, and initiatives to enhance reinsurance and marine insurance capabilities. The commission emphasized removing restrictive measures, supporting foreign institutions, and improving the operating environment, with foreign bank and insurer assets exceeding CNY 7 trillion.