Currency Restrictions Target HK Insurance Market

Bloomberg: China Tightens Restrictions on Insurance Purchases in Hong Kong

China is tightening restrictions on the use of third-party payment providers to buy insurance products in Hong Kong as authorities move to stem outflows of the yuan.

Starting March 12, the People’s Bank of China will prohibit the use of electronic payment services by mainland individuals for any life insurance and investment-related products, according to notices sent by insurers to their agents that were seen by Bloomberg. Individuals can still use those payment systems for insurance on personal accidents, medical and transportation, with a transaction and policy cap of 30,000 yuan ($4,600), the notices showed.