China's top insurance regulator has said that it will treat all market entrants and insurance companies fairly, and will "never again allow 'special companies' from forming".
Mr Chen Wenhui, CIRC Vice Chairman, who made the comment to cadres of the Commission, said the role of the agency is to regulate. He did not elaborate on which special companies had been allowed previously.
He said that the CIRC officials should be clear about the regulator's “bottom limits,” draw clear “red lines” and “strictly regulate”. The CIRC is seen as seeking to rehabilitate its image after the authorities said that the former CIRC chairman Xiang Junbo would be prosecuted for committing violations. Xiang has been detained by the anti-corruption authorities since April.
Mr Chen said that cadres at the CIRC must have a deep understanding of finance and the fundamental role which it plays in socio-economic development. They must also accurately position the role of supervision, understand its importance and be clear about the relationship between the regulator and those it supervises.
He also said that CIRC cadres must strengthen supervision and and market guidance. They have to reinforce protection measures, raise supervisory capabilities and improve the regulatory mechanism.
He said: “Between development and safety, we must resolutely choose risk prevention and uphold market stability.”