Insurers' stock limits raised

Chinese insurance companies can now invest double the previously allowed amount of their assets in yuan-denominated stocks, the Wall Street Journal reported. The China Insurance Regulatory Commission raised the stock investment limit from 5% to 10%, but the exact date the limit was implemented was not publicly disclosed for fear of a "sharp market reaction", a regulatory official said. Insurers now have an additional estimated US$13.21 billion to put into stocks. An investment officer at China Life, one of the insurers, said the company will invest conservatively this year, casting doubt on whether the new investment limit will be maximized. Mainland stock markets have fallen from their May high, although they remain 43% higher than at the start of the year.