Insurance funds set for major role

Source: Xinhua | 2017-05-23

CHINA’S top insurance regulator said yesterday that insurance funds are expected to invest in major projects that will play a significant role in boosting the economy.

These projects will be given easier access to debt investment by insurance funds if the borrowers have a high credit rating, according to a circular from the China Insurance Regulatory Commission.

Such projects are mainly in water conservancy, energy, transport, high-tech and advanced manufacturing, with large scale investment and controllable risks, the CIRC said.

For insurance funds to make debt investment in major projects under the Belt and Road initiative, procedures will be simplified.

The CIRC pledged to do more to channel insurance funds into the real economy.

As of the end of March, 4 trillion yuan (US$581 billion) of insurance funds had gone into infrastructure construction and other projects aimed at improving the quality of people’s lives, according to CIRC figures.