SHANGHAI: China’s insurance regulator recently visited foreign life insurance firms and intermediaries in Beijing as part of investigations into the illegal sale of insurance products in Hong Kong to mainland Chinese, the Shanghai Securities news reported on Monday without disclosing its sources. The investigation arm of the China Insurance Regulatory Commission (CIRC) found that some insurers were mis-selling insurance products, using underhanded marketing methods, the paper said. China has seen a pick up in capital outflows amid concerns about a slowing economy and further depreciation in the yuan currency, which has weakened to six-year lows. Regulators have uncovered illegal capital outflows of US$8.43 billion so far this year. Overseas insurance products can serve as a store of wealth and as offshore collateral for other potential investments such as property, analysts and insurance sector insiders say.

Source: New Strait Times October 31, 2016 02:59 UTC