The China Banking and Insurance Regulatory Commission gave AIA the go-ahead to convert its Shanghai branch into a wholly-owned locally incorporated subsidiary.
Although AIA has existing offices in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Jiangsu and Hebei, it previously was required to secure approvals before operating.
Now, the Hong Kong-headquartered insurer will receive equal treatment in what was already its fastest-growing market at 27 percent in 2019 to reach $1.2 billion. In the same year, foreign insurers made over 280 billion yuan ($40 billion) in policy sales through their local joint ventures – a 32 percent year-on-year increase – representing 7.2 percent of total market share.
AIA is the latest firm to gain further access into mainland China’s opening financial sector. Last month, HSBC also became a wholly-owned insurer in mainland China after buying out its Beijing-based joint venture partner National Trust for an undisclosed sum.
