BEIJING - The National Financial Regulatory Administration (NFRA) on Wednesday announced that China will lower the asset requirement threshold for financial institutions from Hong Kong and Macao special administrative regions to invest in the Chinese mainland insurers, as part of its efforts to deepen opening-up in the financial sector.

From March 1, financial institutions from the two SARs will no longer be required to have assets totaling no less than $2 billion at the end of the previous year to invest in mainland insurance companies, the NFRA said.

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The adjustment follows agreements signed in October 2024 between the mainland and Hong Kong SAR, as well as between the mainland and Macao SAR, to revise the services trade protocols under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) and the CEPA between the mainland and Macao. These revisions include changes to the qualification requirements for Hong Kong and Macao financial institutions looking to invest in mainland insurers.

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This latest move is a significant step in expanding financial opening-up, according to the NFRA. It is expected to help mainland insurance companies attract high-quality investors from Hong Kong and Macao financial institutions, strengthen their capital base, and optimize their equity structures.