Banks, insurers allowed to cross-invest

China’s cabinet has allowed banks and insurers to invest in each other, the Wall Street Journal reported. The State Council announced that it is permitting cross-investments on a trial basis, although it did not specify details, such as the maximum size of banks’ or insurers’ holdings in each other, or which types of insurers banks could buy into. Banking and insurance regulators signed a memorandum of understanding last week to increase cross-sector cooperation.