Chinese insurance firms profit from stocks

Chinese insurance companies made US$1.14 billion from domestic stock market investments last year, state media reported. Their rate of return on stocks was 27.1%, more than four times their overall investment returns of 5.8%, the South China Morning Post reported. Insurers were allowed to invest in stocks in February 2005, but their investments are limited to a maximum of 5% of their total assets. State media reported that the China Insurance Regulatory Commission may raise the investment ceiling to 10%. Shanghai's A-share index gained 130.57% last year, making it the world's best performer.