(Yicai Global) March 19 -- China’s top insurance industry regulator has removed the cap on the size of the foreign shareholding in joint venture life insurers.

The requirement that foreign capital cannot own more than 51 percent of the equity such JVs has been lifted, the China Banking and Insurance Regulatory Commission said today, adding that overseas insurers will not be subject to ownership restrictions.

The revision to the rules sticks to the principles of opening up, fair treatment of domestic and foreign capital and financial risk prevention, the CBIRC added. But in cases where investment may affect national security, an “examination shall be conducted in accordance with the law,” it added.

The move also enlarges the scope of foreign-funded insurance companies in the law to include overseas insurance groups and other overseas financial institutions.

Editor: Tom Litting