BEIJING - China's insurance watchdog on Thursday released a draft document on insurance company ownership.

Any single shareholder's stake in an insurance company should not exceed a third, down from the current 51 percent, according to the China Insurance Regulatory Commission (CIRC) website.

Controlling shareholders should not transfer their shares within three years of the founding of the company, with a two year limit for strategic shareholders and one year for financial shareholders.

The document pledged improved monitoring of equity purchases of listed insurance companies, and forbids investors to buy into an insurer using funds raised by the targeted company through pledged assets, wealth management and other channels.

The CIRC is soliciting opinion on the rules, with a deadline at the end of January.