Chinese insurance fund invests in Russia's Yamal natural gas project

Over 40 Chinese insurance companies and asset managers have started up an investment firm called China Insurance Ltd, raising $6bn for a first fund to finance energy and infrastructure projects overseas. It will boost China's energy security by directing part of its first fund to finance Russia's $27bn Yamal liquefied natural gas project. China Insurance Investment has signed RMB 100bn ($15.3bn) worth of investment agreements, including RMB 60bn ($9.2bn) for urban regeneration and infrastructure. 

China insurance fund set up to boost infrastructure Updated: 2016-01-05 11:00 (Xinhua)

BEIJING -- A fund that mobilizes insurance company funds for infrastructure has been set up with an initial pool of 40 billion yuan ($6.15 billion), China's insurance watchdog said on Monday.

The fund will be managed by the China Insurance Investment Company Ltd., newly established with 1.2 billion yuan of registered capital and 46 corporate shareholders, including 27 insurers, 15 insurance assets management firms and four private companies, according to the China Insurance Regulatory Commission.

In its first investments, the fund will help China Merchants Steam Navigation Company with overseas port projects. It will also support liquefied natural gas projects with Russia.

The fund was approved by the State Council in July and is expected to ultimately reach 300 billion yuan. It is designed to facilitate strategic projects such as housing renovations, urban infrastructure, water conservation and the Belt and Road Initiative. It can also invest in emerging industries, logistics, healthcare, information technology, environmental protection, small and medium-sized enterprises.

The Belt and Road Initiative, a reference to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, aims to revive the ancient trade route between Asia and Europe.