Global Briefs

Global Briefs – June 2020


ChinaChina Pacific Insurance gets green light for London listing

China Pacific Insurance Group has received regulatory approval to issue 125.73m global depository receipts (GDRs), which will be listed on the London Stock Exchange. The green light was granted by the China Securities Regulatory Commission. Swiss Re has agreed to be a cornerstone investor by subscribing to a stake of up to 1.5 percent, China Pacific said. The Swiss insurer will be subject to a three-year lock-up. The listing of the GDRS is under a stock exchange cooperation scheme, known as the Shanghai-London Stock Connect scheme. The GDRs represent about 10 percent of the insurer’s A shares traded on the Shanghai stock exchange, China Pacific said. The Shanghai-based insurer is the second company to be approved for listing under the so-called Shanghai-London Stock Connect programme launched in June 2019. Brokerage Huatai Securities is its first and only listing to date

Hong KongInsurance Authority warns against fraudulent website

The Insurance Authority (IA) today (19 May 2020) alerted the public to a fraudulent website with the domain name of “”. The fraudulent website purports to be the official website of an authorized insurer of Hong Kong, Paofoong Insurance Company (Hong Kong) Limited (Paofoong). Paofoong has confirmed that it has no connection with the fraudulent website. The case has been reported to the Hong Kong Police Force for further investigation. Anyone who has provided personal information to the website or has conducted any insurance transactions through the website should contact Paofoong Customer Services Hotline at 2290-3580, and report the case to the Hong Kong Police Force. Any company carrying on insurance business in or from Hong Kong must be authorized by the IA under the Insurance Ordinance (Cap. 41). The full list of authorized insurers in Hong Kong can be found on the Register of Insurers on the IA website.

United KingdomTrade Credit Insurance backed by £10 billion guarantee

Government to provide guarantees of up to £10 billion to Trade Credit Insurance schemes for business-to-business transactions.

  • Trade credit insurance coverage to be maintained across the market in light of COVID-19, with up to £10 billion government backing
  • Measures will support thousands of businesses by protecting against customer defaults or payment delays
  • Scheme is available on a temporary basis for nine months, backdated to 1 April 2020, and available insurers operating in the UK market

Note to Readers:

  • Trade Credit Insurance underwrites an estimated £350 billion of economic activity of more than 630,000 businesses in the UK each year. It insures suppliers selling goods against the company they are selling to defaulting on payment, giving businesses the confidence to trade with one another
  • Due to coronavirus and businesses struggling to pay bills, there is a risk of credit insurance being withdrawn or premiums increasing to unaffordable levels, which could cause serious issues for liquidity and working capital across business supply chains
  • The scheme will be delivered through a reinsurance agreement that is open to all insurers currently operating in the UK market, covering both domestic and overseas trade with payment terms of up to 2 years
  • The scheme rules will also require participating insurers to comply with certain undertakings regarding the conduct of their business during the period of the scheme. This includes conditions that insurers will forgo profits and will not pay dividends or bonuses for senior staff for their guaranteed Trade Credit Insurance business
  • To protect businesses that the private credit market cannot insure, export credit insurance is also available from UK Export Finance to cover UK exports to 180 countries. Government-backed export insurance from UKEF can protect the 230,000 businesses that export from the UK against the risk of not getting paid when selling internationally
  • Implementation of the scheme is subject to state aid approval, agreement of full form documentation with insurers and acceptance of applications from insurers for participation
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