BNP Paribas and Prudential Financial have obtained approval from China’s National Financial Regulatory Administration (NFRA) to establish separate insurance ventures. The announcement was made by NFRA head Li Yunze during a financial forum in Beijing, highlighting the country’s ongoing efforts to liberalize its insurance sector, according to Reuters.
The joint venture between BNP Paribas and Volkswagen Financial Services aims to leverage the rapid expansion of China’s insurance market, which saw total insurance assets reach $4.2 trillion (29.82 trillion yuan) by the end of 2023. This initiative is part of a broader strategy to attract foreign investment and expertise to China’s financial services sector.
In addition, Prudential Financial has received authorization to set up an insurance asset management operation in Beijing. Li Yunze emphasized, “Next, we will support Beijing’s financial opening up, as always.”
At the same forum, representatives from China’s securities regulator encouraged foreign institutions to invest and conduct business in the country, reflecting a commitment to creating a more inclusive and internationalized financial environment.
The establishment of these new ventures signals significant opportunities for global players in China’s burgeoning insurance market. As the sector continues to grow, these developments are expected to enhance international participation and competition within the Chinese insurance landscape.
In August, BNP Paribas entered exclusive negotiations to acquire 100% of AXA Investment Managers, which oversees nearly €850 billion ($930 billion) in assets.
