Insurers in China are now permitted to invest in private equity and real estate, according to a Reuters report published in the South China Morning Post.
Quoting rules published by the China Insurance Regulatory Commission (CSRC), Reuters says mainland insurers are allowed to invest up to 5% of their total assets in private equity and related financial products and 10% in real estate.
Tong Chengdong, analyst at Guosen Securities Co in Shenzhen, told Reuters that the new policy is good news for the insurance sector as it may push up insurers' long-term investment returns by 50 basis points to 5% annually.
MORE ARTICLES ON INSURANCE, PRIVATE EQUITY
CFO innovation Asia Accounting and Regulation the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Accounting Regulation, IFRS, US GAAP, Tax, investor relations, corporate governance, Corporate Law, Financial Regulators, Internal Audit, Audit, Corporate Law. |
CFO innovation Asia, Finance and Banking the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Corporate Finance, trade finance, treasury and risk management, capital expenditure, Banking, mergers and acquisitions |
CFO innovation Asia the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Finance Management, Corporate Governance, Human Resource Management, Compensation and Benefits, Mergers and Acquisitions, Professional Development, Corporate Real Estate, Risk Management, Budgeting and Forecasting, Business Process Management, Business Process Reengineering, Outsourcing. |
CFO innovation Asia Technology the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Finance Systems, Business Intelligence, EPR, Accounting software, CRM, Cloud Computing, Telecommunications, Business Process Outsourcing, Business Process Management Software. |