An Analysis Of The Risks Involved In The Domestic Listing Of Insurance Companies In China

In recent years, China's capital market is growing maturity, and this creates good conditions for insurance funds to get into the market directly or indirectly.Especially after the formal promulgation of"The Advices of the State Council On the Reform and Development of Insurance Industry"on 15th June 2006, the investment channels of the insurance funds are getting free, the comparison of the insurance funds used to invest has risen greatly, and the insurance companies would get into the capital market with greater scale and desire. As China Life Insurance Company and Ping An Insurance Company listed return to A Shares,"Chinese insurance companies'being listed domestically"has became a very pop topic in the insurance ,and it is a more pop topic that how to make the insurance agent actualize the control of risk and the maximum of benefit.This paper emphasizes that there are both benefits and risks in the capital market according to analyze the characteristic of Chinese-funded insurance companies'being listed domestically and the risk to face. Then, it clarifies that we should take effective actions to control the risk in the capital market on the base of research and to remove or weaken risk effectively. It clarifies the problems Chinese insurance companies have to face in the program of listing domestically according to analyze the characteristic of Chinese insurance companies'being listed domestically. It enumerates the main risk Chinese insurance companies have to face in the program of listing domestically, it also analyzes the systemic risk of China'stock market and the factors affect the systemic risk to prove that the systemic risk of China'stock market is higher than Hesperian'stock market.With the increasing prosperity of Chinese capital market, the Chinese-funded insurance companies have been on the way to be listed within China. Nowadays, with so many Chinese and foreign insurance company engaged in the market competition, it is undoubtedly an effective way for the Chinese-funded insurance companies to be listed in order to obtain capital, expand famousness and enhance the competitiveness. By measuring their own conditions and the requirements to be listed at home and abroad, a growing number of Chinese-funded insurance companies turn their gaze to the Chinese capital market. However, the Chinese-funded insurance companies are confronted with many risks for the immaturity of domestic stock market and imperfect supervision. Among those risks, some are relatively controllable; also, some are uncontrollable risks. If ineptly handled, they will be a threat to the normal operation of listed companies. Therefore, it will provide useful reference to the operation and risk control of Chinese-funded insurance companies listed in China to systematically analyze the main risks that they are confronted.The paper discusses the risk evaluation and countermeasures of the Chinese-funded insurance companies'listing in China, analyzed the risk evaluation to list in China from the aspects of the domino effect of risk occurrence, depth and unquantitativeness of risk influence, analyzed the risk countermeasures to list in China from the aspects of construction of a comprehensive risk management system, establishment of a professional asset management company, establishment of a diversified shareholding structure. Strengthening the establishment the legal system, improving the regulatory cooperation and coordination mechanisms was also discussed. The analysis indicates that the Chinese-funded insurance companies should conduct comprehensive risk assessment, coordinates internal control and external collaboration in development, establish regulatory bodies and integrated risk prevention mechanisms, so as to effectively circumvent the risks faced by Chinese-funded insurance companies to be listed in China.