Chinese insurers poised to invest in real estate industry

Chinese insurance companies could soon be allowed to invest in the real estate sector, an important means to match their long-term assets and boost their investment returns, according to the draft of the revised insurance law.

"Compared with the existing Insurance Law, which came into effect in 1995 and only let insurers put money on government and financial bonds, the revised one expands the investment channels to include bonds, stocks, funds and real estate," said Wu Dingfu, chairman of the China Insurance Regulatory Commission (CIRC), the industry watchdog. He made the remarks as the Standing Committee of the National People's Congress reviewed the draft of the revised insurance law yesterday.

"This is a move in the right direction, and we will try any new investment channel as long as it does good for our company," said Fang Zhinan, general manager of CITIC-Prudential Insurance Co (Beijing branch). "We will keep a close watch on more detailed regulations in this regard."