BEIJING, May 16 (Xinhua) -- China Banking and Insurance Regulatory Commission (CBIRC), the sector regulator, amended related rules to permit insurance capital to invest in more financial products issued by non-insurer financial institutions, reported Xinhua Finance on May 13.
CBIRC released the revised rules on May 13, saying that the new rules are helpful to satisfy the assets diversification needs of insurers and provide long-term and stable funds for the capital market in China.
In CBIRC's circular, wealth management products (WMP) issued by wealth management companies, asset management plans for a single client, and investment plans with debt-to-equity swap as underlying assets are added to the basket of investable financial products for insurers.
Generally, financial products are an important component of insurers' assets. By the end of 2021, financial products invested by insurance capital grew to 1.72 trillion yuan, accounting for 7.39 percent of the balances of insurance capital already used and included WMPs issued by commercial banks, assembled funds trusts, credit asset-backed securities, and asset-backed special plans.
In future, CBIRC vowed to step up regulatory policies system optimization and market-oriented reforms to guide insurance capital, as a source of long-term investment, to better serve the real economy. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
