China will see the debut of the first wholly foreign-owned insurance holding company in January 2020, thanks to the country's efforts to open up its insurance market.

Allianz China Holding, fully owned by Germany's Allianz Group, will open for business in Shanghai on January 16, with its registered capital hitting 2.72 billion yuan (about 392 million U.S. dollars).

The company's application for establishment was approved by the China Banking and Insurance Regulatory Commission in November 2019.

China has taken a slew of measures to upgrade the insurance industry and cater to the public's demand for diversified products, including removing the foreign ownership cap on life insurers and accelerating efforts to open up the insurance market and foster a level playing field.

Read more: China accelerates opening-up of financial sector

Foreign-owned insurance companies will contribute to the reform and high-quality development of China's insurance industry by bringing in sound business concepts and experience, said Zhu Junsheng, a researcher with the Development Research Center of the State Council.

China will continue to lead the growth of the global insurance market in the future, with insurance premiums to expand 14 percent each year over the next 10 years, research data from Allianz Group showed.