CHINA’S INSURANCE SECTOR SHOWS INCREASED INVESTMENT RETURNS

Insurance companies operating in China have earned 50.8bn yuan from fund operations so far this year. The eight-month results show an average yield of 3.37%, up 1.12% from last year’s figures, according to statistics released by the China Insurance Regulatory Commission (CIRC). Total insurance funds reached 1,591.26bn yuan during this period, with 542.90bn yuan, or 34%, of this deposited in banks, a reduction of 2.5% from the previous year. This reduction has been put down to a cut in interest rates for large deposits and the change in legislation that allows insurers to invest directly in stocks. Over 80bn yuan, 5% of total funds, has been invested in the securities market by insurers. The biggest increase in investment has come from the 49bn yuan, or 3.14%, invested directly into listed stocks, an increase of 2% from the beginning of the year. The strong performance of the Shanghai and Shenzen stock exchanges have also been noted as contributing factors in this growth.