China Life’s profit forecast sets scene for market slowdown

Insurers are suffering from a steep decline in domestic share prices, a fall in customer demand and early surrenders

The dynamic growth of the Chinese economy over the past few years is showing signs of a sudden deceleration, thanks to the slowdown in demand for the country’s exports and the financing difficulties of the Chinese banking system. However, despite these problems, China is one of the few countries to escape the full force of the global credit crunch as all major banks are state-owned and are obligated to continue lending.