The first wholly foreign-owned life insurance company on the Chinese mainland, AIA Life Insurance, has opened in Shanghai, insurance giant AIA Co. Ltd. announced.

AIA Life Insurance, a wholly-owned subsidiary of AIA, will operate AIA's life insurance business on the Chinese mainland and is applying to regulators to set up new branches.

In June, AIA received approval from China's insurance regulator to convert its Shanghai branch into AIA Life Insurance, a wholly foreign-owned life insurance company.

Lee Yuan Siong, group chief executive and president of AIA, said that AIA will seize the opportunity to provide Chinese families with more quality products and services, contributing its efforts to promote the healthy development of the insurance industry on the Chinese mainland.

China has taken a slew of measures to upgrade the industry and cater to public demand for diversified products, including removing the foreign ownership cap on life insurers and accelerating efforts to open up the insurance market and foster a level playing field.