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 move comes as the U.S. government is considering imposing sanctions on Chinese banks that do business with North Korea.
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.