Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Credit
News for Outlets

CBIRC allows qualified insurers to properly raise equity investment proportion

March 23, 2020


Abstract : Chinese insurers with high solvency ratio and good asset quality are allowed to properly raise their equity investment proportion from the current ceiling of 30 percent, reported Xinhua Finance, a financial information platform run by Xinhua News Agency Monday.

BEIJING, March 23 (Xinhua) -- Chinese insurers with high solvency ratio and good asset quality are allowed to properly raise their equity investment proportion from the current ceiling of 30 percent, reported Xinhua Finance, a financial information platform run by Xinhua News Agency Monday.

The report quoted Zhou Liang, vice chairman of sector regulator China Banking and Insurance Regulatory Commission (CBIRC) that it is currently a good timing for insurance capital to enter capital market and the eased control over investment proportion is expected to help stabilize the market.

During the past weeks, China's stock market remained relatively resilient contrary to the volatile international financial market and. In next step, CBIRC will actively support insurers to carry out long-term and stable value investing practices and permit more leeway for them in the principle of prudential supervision, said Zhou.

In China, the balance of insurance fund has mounted up to 18.8 trillion yuan at present and their investment in stocks and funds reached about two trillion yuan, taking up 10.8 percent of the total, according to Zhou.

Wang Xujin, director of insurance research center of Beijing Technology and Business University said allowing insurance companies to raise their equity investment ratio, whose levels are up to concrete market demand, is a wise move not only satisfying market needs but also demonstrating stronger corporate governance of insurers in China.

As Wang held, insurance fund is an important source of funds and the second largest institutional investor for capital market, always serving as a crucial condition for the stability of capital market.

In 2015, the former China Insurance Regulatory Commission, integrated with China Banking Regulatory Commission as the CBIRC now, once loosened the proportion requirements for insurers to invest in blue-chip stocks to stabilize the capital market.  (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)

Scan the QR code and push it to your mobile phone

Keyword: insurers CBIRC equity investment

Reading:

China in action to stabilize foreign investment

China to further opening up to foreign investment

Caissa acquires 40pct equities of duty-free shop in downtown Beijing

Central China's Hunan Province OKs building of 55 major projects

China Mobile profit down 9.5 pct in 2019

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial