Mainland insurers given green light to invest abroad

Regulators signed an agreement Thursday to allow mainland insurance companies to set up asset management firms in Hong Kong to invest in foreign stocks and bonds, the South China Morning Post reported. China Life Insurance and Ping An Insurance have been allowed to invest in Hong Kong through the qualified domestic institutional investor (QDII) scheme since last July, on an experimental basis. The agreement, signed by the China Insurance Regulatory Commission and the Hong Kong Securities and Futures Commission, will allow other mainland insurers to join them in investing overseas. The scheme could free up to US$54 billion in mainland insurance funds for investment in overseas stock markets.