Mainland China’s insurance regulator is reportedly considering relaxing investment rules for insurers, allowing purchases of commodities and long-term property rentals.
Ren Chunsheng, head of the unit overseeing fund allocation at the China Insurance Regulatory Commission (
CIRC) said that allowing investors to have more investment options will help deepen the reforms the regulator is rolling out, according to a report by the
Securities Times. Speaking at a recent financial conference, Ren said that the insurance industry should improve risk management and explore more efficient uses for its funds.
The comments came after a several-month crackdown on corruption in the Chinese financial sector, which snagged several high-ranking officials and saw increased scrutiny on insurers’ investment behaviour, reported
Reuters.
Ren added that the CIRC has made progress in curbing overly aggressive investment behaviour by insurers. The government has imposed more stringent restrictions on overseas acquisitions as part of Beijing’s campaign against “irrational” investments by insurers dabbling in sectors such as property, entertainment, and sport.
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