China’s forex regulator published new rules to make it easier for insurance companies to transfer capital in foreign currencies back home.
The rules remove current approval requirements for insurance companies to exchange foreign funds and allow insurers to exchange insurance capital in foreign currencies and proceeds from overseas listings directly at financial institutions based on their actual business needs.
Insurance intermediaries will also be allowed to exchange the insurance claim payments they collect and pay on behalf of insurers.
Financial institutions are required to verify the authenticity of insurance companies’ forex transactions.
The State Administration of Foreign Exchange (SAFE) said the relaxation of insurance capital forex transactions aims to improve the efficiency of the insurance companies’ use of their capital.