CHINESE AUTHORITIES TO EASE DIRECT INSURANCE INVESTMENT RULES

New rules allowing Chinese insurers to make direct equity investments are imminent, sources suggest. Currently stock investments have to be made through licensed insurance wealth management businesses. The new rules will allow insurers to make equity investments, including holding stock, once they cross a valuation standards threshold drawn up by the China Insurance Regulatory Commission. The standards will include a valuation of factors including numbers of employees, IT systems and internal compliance procedures. Earlier this year CIRC raised the proportion of insurance funds that could be directly invested in stock market to 10% from 5%. Insurers can use own foreign exchange or buy foreign exchange from commercial banks to invest in global capital market with the investment scope expanded to cover financial derivatives.