CIRC raises ownership limit

China raised the maximum stake a single investor can own in a mainland insurance company to 20%, a move intended to boost industry investment and expansion. The China Insurance Regulatory Commission (CIRC) also reduced the amount of extra capital required to open a new branch from US$6 million to US$2.4 million. Insurance companies have a base registered capital requirement of US$24 million. The maximum ownership of a domestic insurer allowed for foreign firms remained at 25% but is expected to increase later this year.