Chinese regulator puts limit on insurers' equity investments
The China Insurance Regulatory Commission (CIRC) has banned the country's insurers from taking over businesses outside their industry and tightened the rules and restrictions on their investments as part of its strategy to curb dealmaking. In November, Chinese insurers invested CNY1.89tn ($275bn) – 12% of their total assets – in mutual funds and stocks, according to the CIRC. These huge sums invested in one of the world’s worst performing stock markets of last year have heightened fears about the security of policyholders' funds and the safety of their life savings.
Chinese insurers invested 1.89 trillion yuan (US$275 billion), or 12 per cent of their total assets, in mutual funds and stocks in November, according to CIRC’s data. Photo: Reuters