Two major international insurance companies received regulatory approval to establish wholly foreign-owned asset management subsidiaries in Shanghai, marking the first such approvals in China’s financial capital.
AIA Group, of Hong Kong, and Netherlands-based Aegon Group won permission to set up insurance asset management companies in the city, National Financial Regulatory Administration director Li Yunze announced at the 2025 Lujiazui Forum on Tuesday.
The approvals represent another step in China’s gradual opening of its financial sector to international firms, Yicai Global reported. AIA will establish its asset management company through its mainland subsidiary, AIA Life Insurance, while Aegon plans to fund its Shanghai operation through direct investment.
“The approval reflects AIA’s long-term commitment to the Chinese market and highlights the success of China’s high-level opening up of its financial sector,” AIA Life said in a statement reported by The Paper.
The new AIA company will focus on managing the insurer’s funds more efficiently while offering specialized investment management services and expanding long-term investment capabilities, according to the subsidiary.
AIA Life, which was restructured from AIA’s Shanghai branch and began operations in 2020, became the first wholly foreign-owned life insurer on the mainland. The company’s parent, AIA Group, is one of Asia’s largest insurance companies.
The Shanghai approvals follow similar moves by other international insurers. German insurer Allianz became the first to establish a wholly foreign-owned insurance asset management firm on the mainland in 2021. US-based Prudential Financial opened a similar company in Beijing in February.
China has steadily eased restrictions on international financial firms in recent years as part of broader economic reforms. The changes have allowed foreign companies greater access to Chinese markets while requiring them to meet regulatory standards.
Li said regulators plan additional measures to support Shanghai’s development as a global financial hub. These include encouraging pilot projects in financial technology and cross-border finance, as well as supporting eligible national banks in establishing financial asset investment companies in the city.
The insurance asset management sector manages funds for insurance companies, investing premiums and reserves to generate returns while maintaining liquidity for claims payments. Foreign firms bring international expertise and investment strategies to China’s growing insurance market.
Shanghai serves as China’s primary financial centre, hosting the country’s main stock exchanges and serving as headquarters for major domestic and international financial institutions. The city competes with Hong Kong, Singapore, and Tokyo as a regional financial hub.
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