Support for Insurance

The Chinese Government on August 13 unveiled measures to develop the insurance industry, vowing to raise premium incomes to 5 percent of GDP by 2020. The package issued by the State Council aims to let the insurance industry play a bigger role in the fledgling social security network. The second of its kind since 2006, the package could see citizens paying an average of 3,500 yuan ($565) per capita in premiums by 2020. Commercial insurance will become the primary undertaker of individual and household programs and an important supplier of corporate pensions and health insurance. The insurance will be given a bigger role in the prevention and relief of disasters and accidents through introduction of catastrophe insurance products. 

Geoinformation Industry

China issued its first development plan for the geographic information industry, said an announcement from China's National Administration of Surveying, Mapping and Geoinformation. China sees the geoinformation industry as a new source for economic growth and plans to establish a comprehensive industry system with independent intellectual property rights by 2020. The nation will focus on developing remote sensing services as well as manufacturing surveying and mapping equipment and navigation systems, said the plan. Leading businesses and training of innovative people in this field will be supported.  

Instant Messaging

China has rolled out a regulation to tighten management of instant messaging services, a move which it hopes will help build a clean cyberspace. The regulation targets public accounts on such services, most of which are subscription-based mobile apps, and which can spread information on a large scale. New registrants will for the first time be obliged to register with real names. Users shall abide by laws and regulations, national interests, the legitimate rights and interests of citizens, public order and social morality, and ensure the authenticity of the information they provide, under the regulation. Meanwhile, providers of instant messaging services will be responsible for their safe operation, protect users' information and citizens' privacy, be subject to public supervision and handle illegal information in a timely manner. Regulators will warn violators, limit their rights to release information, suspend their renewal or even close their accounts, based on the degree of the violation. 

New Companies

China saw a surge in registration of new companies, after the country took steps to streamline the process for starting up a business in March, official data has showed. About 1.6 million new companies have been registered since the reform, 64.48 percent up from the same period last year, statistics by the State Administration for Industry and Commerce showed. Registered capital of these new companies totaled 8.22 trillion yuan ($1.33 trillion), 69.09 percent up year on year. China lifted restrictions on minimum registered capital, payment deadlines, down payment ratio and cash ratio of registered capital on March 1, a move aimed at encouraging start-ups and energizing the economy.

Private Banks

The China Banking Regulatory Commission has approved the launch of three private banks in a trial aimed at allowing private capital a bigger role in China's financial system. The three banks, located in cities of Shenzhen, Wenzhou and Tianjin, are subject to the same regulatory rules as their state-owned counterparts. Another two private lenders are in the pipeline and more will be approved if the trial goes smoothly, said the commission. The advent of private lenders is expected to raise the efficiency of the allocation of financial resources in China, where the state-dominated banking sector usually favor large and state-owned enterprises. CA