Insurance firms’ equity limit

Source: Xinhua | 2019-06-10

China’s banking and insurance regulator is considering raising the upper limit of the proportion of capital that insurance firms can hold in equity, the regulator said yesterday.

The China Banking and Insurance Regulatory Commission is “actively studying the issue,” which aims to optimize the allocation of insurance funds, the CBIRC said, as reported by Financial News, a publication run by the country’s central bank.

The regulator will roll out relative policies under the principle of prudential regulation and give insurance companies more investment autonomy so they can better play to their strengths in long-term and value investments, the CBIRC added.