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 ELEVENTH FIVE-YEAR PLAN OF INDUSTRY DEVELOPMENT |
| The year 2006 has historic significance for China insurance industry. "Decisions of the State Council on Reform and Development of the Insurance Industry" (hereinafter referred to as the "Decisions") was promulgated by State Council of China on June 26, which theoretically and practically clarifies the insurance industry's position in the overall situation of economic and social development, in the context of building harmonious socialist society and improving the socialist market economic system. |
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| STATUS OF FOREIGN INVESTMENT |
| In 2006, half of the foreign insurance companies that have entered the China insurance market started increasing their investment and opening up new fields. Increasing the investment creates opportunities for opening up new fields and the latter makes it possible to dig the Chinese market deeper. This year saw almost 20 foreign companies were newly settled in Chinese cities. |
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| COMMITMENTS TO THE WTO AND INTERNATIONAL PRACTICES |
| Foreign non-life insurers will be permitted to establish as a branch or as a joint venture with 51 per cent foreign ownership. Within two years after China's accession, foreign non-life insurers will be permitted to establish as a wholly-owned subsidiary; i.e., with no form of establishment restrictions. |
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| DEVELOPMENT OF GLOBAL INDUSTRIES |
| As survey made by Wall Street stock analysts and insurance experts, which was sponsored by Insurance Information Institute, shows insurance made excellent achievements in 2006 which were enough to yield profits. Analysts also thought insurance premium would accelerate growth, almost double of their expectation of 2005. |
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