Insurers allowed to invest in Hong Kong

The insurance regulator will allow mainland insurers to invest in Hong Kong stocks through a trading link with Shanghai, a move which experts say would help diversify insurers' investment risks.

The liberalization came as insurers suffered a sharp profit decline in the first half of this year, down by 54 percent largely due to the stock market volatility, according to data from the regulator.

The move also underscores the regulator's effort to lower investment barriers for mainland institutions that are facing a shortage of assets that yield sound returns amid an economic slowdown.