New draft rules will allow Chinese insurers to invest in a broader range of financial products, including financial derivatives such as forward contracts, swaps, option and futures, both in the domestic market and overseas, The Wall Street Journal reported quoting two people familiar with the matter. The new regulation from the China Insurance Regulatory Commission will also permit insurers to invest more into real estate and equities, as well as conduct margin trading and short-selling of securities, in an effort to allow insurers to pursue higher returns on their investments and hedge against risk. The easing of controls will support Beijing’s overhaul of capital markets as well as innovation at banks, securities firms and fund management companies, said an unnamed CIRC official.
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