China Market Watch: Insurance Industry and Shenzhen-Hong Kong Stock Connect

Posted by Reading Time: 4 minutes

China-market-watch

China to Become the World’s Second Largest Insurance Market

China is expected to become the world’s second largest insurance market this year, overtaking Japan, owing to the rapid increase of the middle class. The China Insurance Regulatory Commission has reported that China’s premium income reached RMB 1.9 trillion in the first half, up 37.3 percent on the previous year. This growth rate has accelerated fast, compared to 17.5 percent in the first half of 2014 and 20 percent in the first half of 2015. There are now 330 million policy holders in China, triple that of stock investors, and with a lack of insurance companies and products, China’s insurance market has a lot of potential.

Professional Service_CB icons_2015RELATED: Business Advisory Services from Dezan Shira & Associates

Shenzhen-Hong Kong Stock Connect Approved

China’s State Council has approved the implementation plan of the Shenzhen-Hong Kong Stock Connect. In 2014, the Chinese government launched the pilot Shanghai-Hong Kong connect to test the waters, which has achieved steady performance since its initiation. While strengthening ties and cooperation between Hong Kong and the mainland, it will also allow investors to share the benefits of economic developments in both territories, and also for Hong Kong to consolidate its place as an international financial center. The Shenzhen-Hong Kong Stock Connect is the latest step in China’s opening up of the financial sector, an important measure to improve the sector’s international competitiveness.

Restaurant Business: Competitive Market Offers Opportunities and Challenges

China’s catering service market reached RMB 3.23 trillion in 2015, growing by 11.7 percent from the previous year, according to the China Cuisine Association. The improvement in the purchasing power of the rising middle class has encouraged people to dine out more frequently. However, challenges come along with potential opportunities as the market becomes more competitive. The key for foreign players to succeed in China’s catering market is to identify the needs of the clients and the current trend in the market. With cities continue to transform, large international restaurant chains are poised for a further growth through brand recognition, experience sharing, buying power and extensive support networks.

Baby Care Manufacturers and E-commerce Platforms Eying Booming China Market

On the heels of China’s enforcement of two-child policy, demand for baby care products is on the rise, especially for those brands from the U.S. and Europe. It is estimated that the market for maternity and baby products has reached RMB 2.3 trillion last year, of which 15. 6 percent was accomplished through online platforms. The favor for international brands stems from the perception that these brands have higher quality, safety standards, and functionality. Such market trend encourages e-commerce giants to cooperate with overseas baby care products companies. Amazon China, as an example, is trying to seize the business opportunities by expanding its selection of baby products from formula to cover diapers or nappies.


About
Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email china@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

 ‍

Related Reading

Selling_Sourcing_and_E-Commerce_in_China_imageSelling, Sourcing and E-Commerce in China 2016 (First Edition)
This guide, produced in collaboration with the experts at Dezan Shira & Associates, provides a comprehensive analysis of all these aspects of commerce in China. It discusses how foreign companies can best go about sourcing products from China; how foreign retailers can set up operations on the ground to sell directly to the country’s massive consumer class; and finally details how foreign enterprises can access China’s lucrative yet ostensibly complex e-commerce market.

E-Commerce China 250x350China Investment Roadmap: the e-Commerce Industry
In this edition of China Briefing magazine, we present a roadmap for investing in China’s e-commerce industry. We provide a consumer analysis of the Chinese market, take a look at the main industry players, and examine the various investment models that are available to foreign companies. Finally, we discuss one of the most crucial due diligence issues that underpins e-commerce in China: ensuring brand protection.
CB_2016_04_Establishing_and_Operating_a_Business_in_China_2016Establishing & Operating a Business in China 2016
Establishing & Operating a Business in China 2016, produced in collaboration with the experts at Dezan Shira & Associates, explores the establishment procedures and related considerations of the Representative Office (RO), and two types of Limited Liability Companies: the Wholly Foreign-owned Enterprise (WFOE) and the Sino-foreign Joint Venture (JV). The guide also includes issues specific to Hong Kong and Singapore holding companies, and details how foreign investors can close a foreign-invested enterprise smoothly in China.