China Permits Insurers to Invest in Real Estate, Equity

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.

 

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