Insurers eye long-term gain in housing plan

BEIJING - Seven Chinese insurance companies will invest up to 80 billion yuan ($12.3 billion) to build affordable housing in Beijing, a secure investment that will help them gain government support in investments including nursing homes, said a person familiar with the situation.

Led by China Pacific Insurance Co Ltd, the insurers will lend between 70 billion yuan and 80 billion yuan to the Beijing Land Reserve Center, managed by the Beijing municipal government, and the city's land reserve will be used as the collateral.

According to the Beijing Times, the center will use the insurance funds to construct affordable housing, but the money cannot be used for the selling phase.