(ECNS) -- Consumers from the Chinese mainland might find it harder to buy Hong Kong-based insurance policies as regulators make new attempts to tighten controls, Beijing Youth Daily reported.
Authorities have urged major Hong Kong insurers to only sell policies for personal accidents, as well as medical and transport coverage to mainland purchasers, excluding life insurance and investment products.
Individuals can still use electronic payment systems to buy insurance, but transactions are limited to 30,000 yuan ($4,600) effective March 12.
Before the latest move, in early February China's State Administration of Foreign Exchange capped overseas purchases of insurance products using UnionPay bank cards at $5,000 per transaction. Insurers, including BOC Life, have already suspended online payments using UnionPay.
Hong Kong boasts a wider range of policies and higher investment returns than on the mainland, and a more sophisticated market. The rapid increase in insurance policies bought by mainland visitors reached HK$21.1 billion through September last year, some 21.7 percent of new premiums.
Analysts say mainland residents also buy Hong Kong insurance policies as a way to skirt restrictions on capital outflows by disguising them as investments.
Liu Xuezhi, an analyst at Bank of Communications, said China still faces capital outflow pressures in 2016 because the yuan may weaken further.
