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Domestic insurers move into real estate

China's insurance companies are moving into the country's property market in anticipation of an as yet unannounced pilot scheme that will let them buy real estate for investment purposes, the South China Morning Post reported. China Life and Ping An, the country's two largest insurers, received preliminary approval late last year to invest in completed or late-stage property projects. According to market sources, they have already bought a number of sites and other insurers are following suit. So far, however, the companies have claimed the properties are for their own use. Domestic insurance companies, which have combined assets of US$242 billion, began seeking advice from property management companies last year on how international insurers organize their real estate investments. It is said that Chinese insurance companies will be allowed to invest 8% of total assets in real estate projects.

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