Page 328 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
insurance sector has a strong resilience in the their way into three major global bond market
future. However, economic slowdown and the indices. The global economy was on track to grow
high-inflation environment globally will weigh on by 2.9% in 2022, down 1.2 percentage points from
insurance markets. Slowing growth typically leads the January projection, the World Bank Group said
to lower demand for insurance. The main inflation in its Global Economic Prospects in June. As per
impact will show in rising claims costs, more in projections, China's economic growth momentum
non-life than life insurance in which policy benefits was expected to rebound in the second half of 2022.
are defined at inception. Property and motor is China will achieve steady and sustained economic
expected to be most impacted in the near term. development as it boasts large market entities,
In the non-life sector, the research team expects complete industrial systems, a diligent workforce
inflation of exposure values and rate hardening will and strong social governance ability. Despite
boost premium growth, notably in North America the COVID-19 pandemic and increased risks and
and Europe. In real terms and globally, however, challenges from the external environment, the
they estimate premiums will rise by 0.8% in 2022. For international market demand remains overall
2023, forecasters expect global non-life premiums stable (Xinhua, Int’l financial institutions).
will grow by 2.2%, based mostly on ongoing rate
hardening, notably in commercial lines of insurance China released the sixth list of major foreign
business. Premium growth in emerging markets investment projects and further expanded the
will likely outstrip that of advanced economies in 2022 industry catalog of sectors encouraging
2023, with estimated real growth of 3% in 2022 foreign investment as part of its latest efforts
and 4.2%in 2023. A main driver will likely be strong to advance high-level opening-up. The industry
demand for short-term health insurance on the catalog will be updated to increase support for
back of increased awareness of health security in foreign investment in such fields as advanced
the wake of the pandemic (Hu). manufacturing and modern services, as well as in
China's central, western and northeastern regions.
Financial Securities More policy measures to spur foreign investment
quality and quantity will be released, with a focus
To attract foreign investors, China scrapped on the manufacturing sector. The moves are part
foreign ownership caps for securities, fund of China's broader efforts to further unleash the
management, futures and life insurance firms. In potential of foreign investment while upholding
2022, it also allowed eligible overseas institutional true multilateralism and expanding high-level
investors to invest directly or through connectivity opening-up. China will leverage the strength of
in the exchange bond market. The policies were its enormous domestic market to attract global
welcomed by international financial institutions resources and production factors, and enhance
and further enhanced the appeal of China's the interplay between domestic and international
financial industry and market. China is one of the markets and resources. "Despite the rising
most popular destinations for foreign investment, protectionism and anti-globalization sentiment in
and its appeal has become even stronger over the the world, China is determined to expand high-
past decade due to the steady financial opening-up. level opening-up with concrete actions," said Liu
In 2021, the capital and assets of foreign banks in Ying, a researcher at Renmin University of China's
China both increased by more than 50% compared Chongyang Institute for Financial Studies. "That
with 10 years ago, and for foreign insurance will facilitate global cross-border business activity
companies, the figures surged by 1.3 times and to further consolidate China's role as a safe bet
six times, respectively. Overseas investments in for foreign investment and, more importantly, a
Chinese securities came in at US$2.16 trillion at stabilizer and powerhouse for global economic
the end of 2021, marking a three-times increase recovery, which is suffering from COVID-19,
from that of 2012. Major global benchmarks like geopolitical issues and interest-rate hikes in
MSCI, FTSE Russell and the S&P Dow Jones have developed economies." Pursuing the new dual-
included the A-shares and strengthened their circulation development paradigm—which takes
weightings. China's government bonds also made the domestic market as the mainstay and lets
the domestic and international markets reinforce
328
insurance sector has a strong resilience in the their way into three major global bond market
future. However, economic slowdown and the indices. The global economy was on track to grow
high-inflation environment globally will weigh on by 2.9% in 2022, down 1.2 percentage points from
insurance markets. Slowing growth typically leads the January projection, the World Bank Group said
to lower demand for insurance. The main inflation in its Global Economic Prospects in June. As per
impact will show in rising claims costs, more in projections, China's economic growth momentum
non-life than life insurance in which policy benefits was expected to rebound in the second half of 2022.
are defined at inception. Property and motor is China will achieve steady and sustained economic
expected to be most impacted in the near term. development as it boasts large market entities,
In the non-life sector, the research team expects complete industrial systems, a diligent workforce
inflation of exposure values and rate hardening will and strong social governance ability. Despite
boost premium growth, notably in North America the COVID-19 pandemic and increased risks and
and Europe. In real terms and globally, however, challenges from the external environment, the
they estimate premiums will rise by 0.8% in 2022. For international market demand remains overall
2023, forecasters expect global non-life premiums stable (Xinhua, Int’l financial institutions).
will grow by 2.2%, based mostly on ongoing rate
hardening, notably in commercial lines of insurance China released the sixth list of major foreign
business. Premium growth in emerging markets investment projects and further expanded the
will likely outstrip that of advanced economies in 2022 industry catalog of sectors encouraging
2023, with estimated real growth of 3% in 2022 foreign investment as part of its latest efforts
and 4.2%in 2023. A main driver will likely be strong to advance high-level opening-up. The industry
demand for short-term health insurance on the catalog will be updated to increase support for
back of increased awareness of health security in foreign investment in such fields as advanced
the wake of the pandemic (Hu). manufacturing and modern services, as well as in
China's central, western and northeastern regions.
Financial Securities More policy measures to spur foreign investment
quality and quantity will be released, with a focus
To attract foreign investors, China scrapped on the manufacturing sector. The moves are part
foreign ownership caps for securities, fund of China's broader efforts to further unleash the
management, futures and life insurance firms. In potential of foreign investment while upholding
2022, it also allowed eligible overseas institutional true multilateralism and expanding high-level
investors to invest directly or through connectivity opening-up. China will leverage the strength of
in the exchange bond market. The policies were its enormous domestic market to attract global
welcomed by international financial institutions resources and production factors, and enhance
and further enhanced the appeal of China's the interplay between domestic and international
financial industry and market. China is one of the markets and resources. "Despite the rising
most popular destinations for foreign investment, protectionism and anti-globalization sentiment in
and its appeal has become even stronger over the the world, China is determined to expand high-
past decade due to the steady financial opening-up. level opening-up with concrete actions," said Liu
In 2021, the capital and assets of foreign banks in Ying, a researcher at Renmin University of China's
China both increased by more than 50% compared Chongyang Institute for Financial Studies. "That
with 10 years ago, and for foreign insurance will facilitate global cross-border business activity
companies, the figures surged by 1.3 times and to further consolidate China's role as a safe bet
six times, respectively. Overseas investments in for foreign investment and, more importantly, a
Chinese securities came in at US$2.16 trillion at stabilizer and powerhouse for global economic
the end of 2021, marking a three-times increase recovery, which is suffering from COVID-19,
from that of 2012. Major global benchmarks like geopolitical issues and interest-rate hikes in
MSCI, FTSE Russell and the S&P Dow Jones have developed economies." Pursuing the new dual-
included the A-shares and strengthened their circulation development paradigm—which takes
weightings. China's government bonds also made the domestic market as the mainstay and lets
the domestic and international markets reinforce
328
