Chinese insurance companies invest $39 billion in the foreign share markets
20 April 2008Chinese insurance companies are ready to invest in foreign securities more than 300 billion yuans ($39,5 billion) after reception of the corresponding sanction from the government of the country. According to the new rules of investment for the insurance companies, which is to come into force on July, 25th, the limiting size of a share of actives is increased from 5 % up to 15 %, which insurers can use for investments abroad. Such information has been represented in the message of the Commission on regulation of the insurance market of China. Besides own capital of the insurance company should make not less than 10 % from its actives.
At end of 2006 the total sum of actives of the Chinese insurance companies was equaled to 2 bln. yuans ($263 billion). Introduction of new regulations became excellent news to Hong Kong as first of all, in observers’ opinion, insurers will be interested in Chinese companies’ shares, traded at the Hong Kong stock exchange - it will be so-called “Hâ€-category shares. The analyst of company Shenyin and Wanguo Securities Yu Bin expresses following opinion: “In view of a proceeding strengthening the Chinese national currency, the greatest interest for the insurance companies is represented with investments into foreign actions, instead of bondsâ€. Bank deposits, bills, bonds, monetary shares’ funds and the action can become new rules objects of investment.
- Foreign insurers face obstacles in China
- Insurance market has passed a boundary
- Prudential has given $2 billion for purchase of actives in the USA
- Warren Buffett has offered to buy back the insurance for debts in 800 billion
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