Germany Allianz Insurance Group received a green light from China to set up the country's first-ever foreign insurance holding company, both the company and regulator said on Sunday. 

The China Banking and Insurance Regulatory Commission (CBIRC) approved the preparatory establishment of Allianz (China) Insurance Holding Co Ltd, CBIRC said in a statement, noting the preparation should be finished in one year. 

The 100 percent-owned insurance holding company, which is expected to be established in 2019, enhances Allianz's strategic flexibility to expand investment and growth in China, said the company's press release. 

The CBIRC also approved the Hong Kong Chiyu Banking Corporation Ltd. to establish a branch in Shenzhen. 

This year China has announced to further open up the insurance sector, including lifting share cap on foreign companies. 

The CBIRC said in the Sunday statement that it would steadily expand the opening-up of the financial industry on the basis of continuous improvement of risk prevention and capabilities of supervision and management.