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An August 2016 study by Boston Consulting Group and Munich Re said that challenges in the Chinese market have made most providers unprofitable. Many potential customers don't know about the products, some products are not tailored to meet the needs of customers, and there is the danger only patients who know that they are sick or likely to become so will buy insurance.

An exhibitor from Belgium demonstrates how to operate a mini lathe during a trade fair in Harbin, capital of Heilongjiang province. [Photo by Ma Chengjun/For China Daily]

An earlier survey conducted by the Japan Economic Research Center and the Nikkei News Agency showed that nearly 70 percent of the interviewees expressed expectations for the strong consumer demand of Chinese people.

An industry expert who didn't want to be named said Beingmate's loss might not be as big as reported. The insider said the financial result might lead to the possible acquisition of additional Beingmate shares by Fonterra, which already owns 18.8 percent of the Chinese infant formula company. By doing so, Fonterra can produce and distribute its own infant formula brands at lower costs, said the insider.

An employee works at the plant of CITIC Dicastal in Qinghuangdao, Hebei province, March 5, 2013. [Photo/VCG]