Regulator tightens investment rules for insurance firms

China on Friday said new rules governing insurers' investments will come into force on April 1, and the same will focus on governing the way funds are invested by insurers and on improving risk control.

The new rules are expected to improve the regulations that are in line with the central government's efforts to prevent financial risks in the insurance sector, according to Jia Biao, deputy head of the capital operation department of China Insurance Regulatory Commission, the country's insurance regulator.

According to the new rules, all overseas investments made by the country's insurers must be made according to rules set by the central bank and the foreign exchange regulator, both of whom had issued guidelines to enhance scrutiny of overseas investment since 2016.