Call for stock market investment of premiums

HONG KONG - Insurers should be allowed to invest at least part of their premium income in the stock market according to Xiao Zhuoji, a professor of economics at Beijing University. Currently Chinese companies are restricted to putting premium income in low-yielding bank deposits or government bonds. Official sources in China believe such a step would increase demand in currently depressed markets and boost the market-stabilising force of institutional investors.