Curbs on insurance JVs likely

China may prohibit foreign insurers from buying into more than one domestic insurance company, in an effort to avoid competition between the buyer and the seller.

"Foreign insurance companies that have already received the green light to invest in a Chinese counterpart may not be allowed to take equity stakes in other local firms operating in the same business area," said the China Insurance Regulatory Commission (CIRC), the industry regulator.

The statement comes at a time when the CIRC is fine-tuning the draft rules on insurance companies' stake management and seeking public suggestions on the same. The regulator prepared the draft rules in August.