China's Insurance Companies Step Up Outbound Portfolio Investment
17 Pages Posted: 25 May 2007
On 21 December 2006, the China Insurance Regulatory Commission (CIRC) announced a new draft version of the provisional measures on administering outbound portfolio investment of insurance funds. China has seen a rapid increase in premium income in recent years, while the domestic investment vehicles these funds could be invested in, previously limited to bank deposits and government bonds, has become more diverse. Overseas investment by the insurance companies has thus far been limited to each company's foreign exchange holdings, but under the draft measures the maximum investment would be raised to 15% of total insurance assets, and the list of eligible investments would be widened to include equity products.
Keywords: China, Outbound Portfolio Investment, Insurance Companies
JEL Classification: F33, G15, G22
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