On 7 March 2018 the China Insurance Regulatory Commission (CIRC)
issued its amended "Insurer Shareholder Regulations" (the
Regulations). Among other items, the Regulations delineate
Shareholders in CIRC-authorised domestically-invested PRC insurance
companies (Insurers) into four categories:
- Financial Investor Class I - (less than 5%)
- Financial Investor Class II - (5% or greater but less than
15%)
- Strategic Investor - (15% or greater but less than 1/3)
- Controlling Investor - (1/3 or greater)
However, due to the fact that the Regulations also specifically
prohibit any future changes to an Insurer's Shareholder
register resulting in the emergence of a single shareholder (or
affiliated/acting-in-concert group) holding greater
than 1/3 of an Insurer's shares then, for the purposes
of any new application to acquire an Insurer's
shares (New Applicant), Controlling Investor means in effect 1/3,
and 1/3 only.
