New energy vehicle insurance incurred a underwriting loss of 5.6 billion yuan last year; multiple banks in Shanghai have implemented domestic freight foreign exchange payment facilitation services | Financial Morning Brief

|April 2, 2026, Thursday|

**NO.1 **Li Yunze Meets with the Chair of the Administrative Management Committee of the Monetary Authority of Macao, Huang Shanwen

On March 31, Li Yunze, Party Secretary and Director of the National Financial Regulatory Administration, met with a delegation led by Huang Shanwen, Chair of the Administrative Management Committee of the Monetary Authority of Macao. The two sides exchanged views on strengthening regulatory cooperation between the two places, deepening the interconnection and mutual access of financial markets in the Guangdong-Hong Kong-Macao Greater Bay Area, and supporting the economic development of Macao, among other topics.

NO.2** Multiple Banks in Shanghai Roll Out the Convenience Services for Cross-Border Freight Foreign Exchange Payments Within Domestic Scope**

On April 1, the Bank of China’s Shanghai branch, under the guidance of the Shanghai branch of the State Administration of Foreign Exchange, relied on the cross-border financial services platform and was the first to roll out within domestic scope business application scenarios for foreign exchange payment convenience services related to domestic freight for multiple enterprises under its jurisdiction. On the same day, the Shanghai branch of China Construction Bank was also the first batch to complete the rollout of business in the new scenario. Within just one day, the bank completed freight invoice verification and remittance confirmation for 22 domestic enterprises—49 transactions in total—with a total amount of USD 769k.

Commentary: Relying on the cross-border financial services platform of the State Administration of Foreign Exchange, the platform connects to the invoice data of the Shanghai Municipal Taxation Bureau through the aviation and trade blockchain network. This enables bank systems to automatically verify the authenticity, validity, and whether VAT invoices have been used more than once. Enterprises no longer need to repeatedly submit paper materials, remittance efficiency improves significantly, and “the cost at your feet” is almost zero; banks also gain a fast and trustworthy verification channel, and the pressure to carry out business is clearly reduced.

NO.3** Last Year’s Underwriting Losses for New Energy Vehicle Insurance Hit RMB 5.6 Billion

Recently, data released by the Chinese Association of Actuaries and China’s insurance information network show that in 2025, China’s insurance industry underwrote 43.58 million new energy vehicles, with premium income of RMB 190 billion and a risk protection amount of RMB 159 trillion. At the same time, underwriting losses in the industry reached RMB 5.6 billion, representing a RMB 0.1 billion improvement in losses year over year, while the combined ratio fell by 1.3 percentage points year over year.

Commentary: With the rapid increase in the penetration rate of new energy vehicles, in 2025, new energy vehicles already accounted for 12.75% of the number of vehicles insured in the auto insurance market, which is crucial to the profitability of auto insurance. However, behind the contradiction between “high premiums” and “high claims” in new energy vehicle insurance, a profound mismatch is reflected between traditional auto insurance product structures and the structural characteristics of new energy vehicles.

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