Sign Up
Login

China eases investment rules for insurers to increase flows into stocks

Written by Adam Cadle
01/11/2023

China is easing investment rules allowing insurers to make longer-term investment in shares.

The country’s Ministry of Finance is to evaluate insurers’ return on net assets based on a combination of a three-year cycle and a one-year timeframe, instead of just the latter previously.

In the same notice on its website, the Ministry of Finance said that Chinese insurance firms should set reasonable investment targets and balance risk and return, as well as refrain from making high-risk investments.

Under current regulations, the country’s insurance firms are allowed to invest between 10% and 45% of their total assets in equities based on their solvency ratios.

The latest changes to the investment rules are “effective immediately”, the Ministry of Finance added.

Related Articles

  There are no related documents to show at this time.

Impact Investing roundtable

Portfolio optimisation in today’s challenging market environment
Adam Cadle speaks to Dr Laura Ryan, Head of Research at Ardea Investment Management, about the firm’s insurance asset allocation optimisation tool and the reasons for developing it

Absolute Return Fixed Income roundtable

European Loans roundtable

The role ETFs can play in the ESG journey for insurers
Justin Wheeler, Head of UK iShares Asset Owner Distribution at BlackRock, and Mark Guirey, Head of EMEA Insurance Segment and UK Asset Owner Client Coverage at MSCI, discuss the drivers behind growth in this area, market reactions to COVID-19, and the role of indexing
Most read stories...
DIVERSIFIED PRIVATE CREDIT
Editor Adam Cadle talks to BNP Paribas Asset Management head of pension solutions Julien Halfon about investing in diversified private credit
World Markets (15 minute+ time delay)

Pictet-roundtable

BNP Paribas roundtable

ETFs roundtable

Iame roundtable May 2018

iame-roundtable2017