Report CIRC to Allow Insurers to Invest in Stocks

June 23, 2004

According to news reports the China Insurance Regulatory Commission (CIRC) will soon permit the country’s insurers – foreign and domestic – to make direct investments in China’s stock market.

The articles cited a report written by CIRC chairman Wu Dingfu which indicated that “the conditions for direct investment of insurance funds into the stock market are basically ripe.”

China currently bans direct investment of funds from insurance companies in the country’s stock markets, but allows insurance companies to invest up to 15 percent of their total assets indirectly through securities investment funds.

Chinese State media also reportedly quoted central bank chief Zhou Xiaochuan as saying that insurance firms should be allowed to play a role in the stock market.

In late April, state media reported that details on direct investment of insurance funds in stocks were under discussion and could be launched at any time.

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