CIRC to curb insurance funds' equity investment

The China Insurance Regulatory Commission hopes to reduce the proportion of total equity assets held by insurance funds to 30 percent. The limit was raised to 40 percent last year.

The move indicates the regulator wants to improve regulatory measures against the short-term and speculative use of insurance funds.

CIRC Vice-Chairman Chen Weihui said in an article published on Wednesday in People's Daily that the regulator is planning to introduce measures to curb speculative use of insurance capital in investing in the stock market, including forbidding insurers and non-insurance institutions from jointly acquiring listed companies, clarifying that insurance companies shall use their own capital, instead of insurance funds, for major investment in the stock market, and requiring insurance companies to file with the CIRC when they make major stock investments, and gain approval from the CIRC to acquire listed companies.