Hong Kong's insurance regulator is reported to be striving to attract large insurance companies such as AIA (1299) to bring investment decision-making functions back to Hong Kong from Singapore. Bloomberg cited sources, reporting that over the past year, Hong Kong's insurance regulator has been pushing some large life insurance companies in Hong Kong to bring investment decision-making functions back to Hong Kong, after these insurance companies had previously relocated the relevant functions to Singapore. The action is reported to have been launched at the beginning of last year, with the report citing sources indicating that this initiative, led by Hong Kong's Insurance Authority, was launched at the beginning of 2024, focusing on companies such as AIA. The report cited sources indicating that due to the tax incentives offered by Singapore's Monetary Authority, some insurance companies have accelerated their steps to use Singapore as a regional asset management center in recent years, despite the main sales of policies being conducted in Hong Kong. Although this practice of relocating to Singapore has been allowed by Hong Kong's Insurance Authority, a series of new challenges have raised concerns among regulators. The report cited sources indicating that the increasing competition between the two financial centers in terms of talent and capital, coupled with the rising concentration risk of asset management companies, has triggered a review of outward migration. Hoping to create more jobs in Hong Kong, when insurance companies inform Hong Kong's insurance regulator of their outsourcing decisions, the regulator can track their decision-making process. According to a guideline named GL14, the Insurance Authority can review detailed arrangements between insurance companies and their investment management companies for entrusted funds, including amounts and locations. The report cited sources indicating that at least in one case, the Insurance Authority specifically examined whether the Hong Kong investment team ultimately made the decisions on these authorizations. The report cited sources indicating that the regulator has expressed a hope to create more job opportunities in Hong Kong, including in insurance companies, fund management companies, and law firms. A spokesperson for the Insurance Authority stated: 'Currently, there are no legal requirements for life insurance companies to maintain assets or make investment decisions in Hong Kong. However, all authorized insurance companies should prudently manage their assets to avoid excessive concentration in terms of risk types, counterparties, and investment tools. This is very important for ensuring that insurance companies can promptly and swiftly settle claims and fulfill contractual obligations to protect the interests of policyholders. In addition, in accordance with international best practices, the Insurance Authority will also appropriately consider the potential legal and operational limitations of transferring capital between different jurisdictions when individual authorized insurance companies conduct disposal and recovery planning.'