China's insurance regulators have drafted regulations for foreign insurance firms operating in China, a senior official in the sector said in Beijing January 24.

Ma Yongwei, chairman of the China Insurance Regulatory Commission (CIRC) said the regulations have been submitted to the State Council for approval.

He noted that the new regulations are drafted on the basis of similar rules which have been effective in Shanghai, where most of the foreign insurance firms operating in China are based.

The new regulations are meant to prepare China for imminent entry into the World Trade Organization (WTO), Ma said.

Last year saw China's insurance market open further to foreign competition, and four foreign insurance firms were approved by theCIRC to enter the market, while two joint ventures went into formal operation, and two Chinese insurance firms were granted thego-ahead to seek foreign investment.

By the end of 1999, 15 foreign insurance firms were operating in China, accounting for half of all the country's insurance companies. (Xinhua)