Site icon China Economic Review

CIRC raises investment caps for insurers

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.

Exit mobile version