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Chinese regulator encourages insurers to invest in quality listed companies

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Chinese regulator encourages insurers to invest in quality listed companies

A senior official at the China Banking and Insurance Regulatory Commission said the regulator supports insurance companies investing in quality listed companies, Shanghai Securities News reported.

Ren Chunsheng, director of the regulator's insurance fund supervision department, said at a Oct. 13 forum in Beijing that insurers are encouraged to make financial and strategic investments in quality and privately owned listed companies. This would mitigate liquidity risks related to these companies' share pledges, where company shareholders and investors put up company equity as collateral.

He said the regulator is also seeking feedback on insurance asset management product regulation, and added that the regulator hopes to channel insurance funds to more investments in private companies and small and medium-sized enterprises.

In addition, Ren said the CBIRC will revise regulations on equity investments and insurance companies' private equity funds, and that industry restrictions imposed on insurers' equity investments may be lifted in the future. Insurers can be a source of long-term funds to the real economy, Ren said.