Insurers to Be Allowed to Invest in China Real Estate

Filed in archive News on July 20, 2010

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Insurers will soon be able to invest in areas such as real estate. The declaration was made by China's insurance regulation agency on Monday. This comes after the sector had most of its investments in less risky areas, resulting in only a small return on assets in the first half.

The scope of investment for insurers will be "steadily widened", according to the Chairman of China Insurance Regulatory Commission, Wu Dingfu. Areas of investment will include equity in unlisted companies as well as real estate investment.

It was noted that insurance products may face a number of factors that may hurt its demand. These factors included the potential decrease in rebates of exports, and even the possible slowing of auto sales and investments in fixed-assets.