AXA Tianping reaps the rewards of the city’s dynamic financial sector

AXA Tianping became one of the largest wholly foreign-owned P&C insurance companies in China in 2019 after receiving watchdog approval to buy its remaining 50% joint venture in the company.

Shanghai is becoming increasingly attractive to foreign financial firms as it improves the environment for institutions along its journey to becoming a leading global financial center.

AXA Tianping Property & Casualty Insurance Co Ltd, a wholly owned property insurance subsidiary of the AXA Group, has seen first-hand the improvement in the financial sector’s business environment.

Aiming to increase its influence in the Asia-Pacific region and the rest of the world, Shanghai has maintained its leading role in the development of the Chinese financial sector over the past decades.

“The city has played a key role in reforming and opening up the financial sector, serving as a pioneer and giving practical demonstrations to other areas in this field,” said Zhu Yamin, CEO of AXA Tianping Property & Casualty. Insurance Co Ltd.

“That’s why AXA, as a leading global insurance group, chose Shanghai as the location for its Chinese headquarters – hoping to fully leverage our advantage in internationalization of more efficiently,” she said.

Zhu said China’s financial industry, especially the insurance industry, has obviously accelerated the pace of opening up in recent years, and its market-oriented characteristics have become increasingly prominent.

“We have seen regulatory departments at all levels continue to strengthen construction and improvement to promote the standardized development of the industry,” Zhu noted.

While a series of policy measures have been put in place, foreign-funded enterprises now get much more development opportunities and enjoy more support in a better business environment here, she added.

“We have witnessed the rapid optimization of the business environment and the expansion of openness in Shanghai,” Zhu said.

“Over the past two decades, every step of our growth in the Chinese market could not have been achieved without the city’s outstanding business environment and strong support from local authorities at all levels,” she said. declared.

Seizing the opportunities of favorable macroeconomic policies, in particular those that expand financial openness, the AXA Group finalized its full acquisition of AXA Tianping in December 2019. It had received the approval of the China Banking and Securities Regulatory Commission. insurance to purchase his joint venture’s remaining 50% stake in the business.

The deal made AXA Tianping one of the largest wholly foreign-owned P&C insurance companies in China.

The financial sector can expect greater improvements in the near future. The Shanghai government recently formulated a new plan for the city’s development as an international financial center under the 14th Five-Year Plan (2021-2025).

It has set itself the goal of significantly improving its expertise as an international financial center by 2025 and further enhancing its role in serving the high-quality development of the Chinese economy.

The city also aims to consolidate its central position in financial asset allocation and yuan risk management and strengthen its global resource allocation functions. These measures aim to support a solid foundation for its development as an international financial center of global importance by 2035.

The total trading volume in the city’s financial markets is expected to reach about 2.8 quadrillion yuan ($438.5 trillion) in 2025, while the scale of direct financing is expected to reach about 26 trillion yuan, or more. 85% of the national total.

The city also expects the cumulative issuance of panda bonds (yuan-denominated bonds from non-Chinese issuers) to reach 700 billion yuan by 2025, and hopes to welcome around 50 leading fintech companies.

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