SHANGHAI—China UnionPay Co. on Saturday banned Chinese customers from purchasing overseas insurance products other than accident and medical-related policies, as authorities move to stem capital outflow by narrowing a popular gateway for shifting money abroad. Mainland Chinese clients using debit and credits cards issued by UnionPay are only allowed to buy accident, illness, and tourism-related insurance policies, while other programs are “strictly banned,” according to a statement released Saturday by UnionPay International,...
China Union Pay has banned Chinese customers from buying overseas insurance policies to prevent investments flowing out of China. In a statement, UnionPay International said mainland Chinese clients using UnionPay-issued debit and credit cards could only purchase "accident, illness, and tourism-related insurance" abroad and transactions would be capped at $5,000. The weak yuan has prompted Chinese residents to invest in overseas policies, while also bypassing the $50,000 investment limit.