Domestic insurers may invest abroad

Insurance companies in China may be allowed to invest in a broader range of overseas stocks and financial products. Draft rules issued Thursday by the mainland's insurance regulator would cap foreign investments by insurance companies at 15% of their total assets the previous year, the Wall Street Journal reported. The draft released by the China Insurance Regulatory Commission would update rules issued in 2004. Insurers are currently only allowed to buy shares of Chinese companies traded overseas. The changes would also allow them to invest in fixed-income products overseas and to buy derivative products including futures, swaps and options. CIRC data pegged the total assets of China's insurance companies at US$240.3 billion at the end of November.