The China Insurance Regulatory Commission (CIRC) has raised the limit on the percentage of assets insurance firms are permitted to invest in A-shares and domestic securities funds to 25% from 20%, the South China Morning Post reported. Firms with assets over US$633 billion will also be permitted to invest up to 15% of assets in overseas bonds and equities, up from 5-10% at present. The move is intended to allow insurance firms, which currently invest assets mostly in fixed-income products, to diversify their investments. The companies may not immediately jump at the opportunity presented by the new rules, however: Insurers have reduced their A-share holdings this year amid market weakness.
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