.contact us |.about us
News > Business News ...
Insurance companies allowed to trade forex funds
( 2003-09-18 08:51) (China Daily)

The State Administration of Foreign Exchange (SAFE) said yesterday insurance companies, including foreign insurers operating in China, will be allowed to trade their forex funds in the interbank market starting on October 1.

The move will help insurance firms better manage their forex funds, which are mostly deposited in the banks, and improve their capability to settle claims, the administration said.

After they obtain SAFE's approval, insurance firms can borrow or make loans of no longer than four months at the Shanghai-based China Foreign Exchange Trade System.

An insurer's total interbank forex borrowings or lendings cannot exceed 50 per cent of its owned forex capital, and single loans cannot be higher than 10 per cent of the borrower's forex capital or 15 per cent of the lender's forex capital.

In June 2002 the trade system launched interbank forex services which can "meet fairly well financial insitutions' needs to manage their foreign exchange positions," the administration said.

Chinese insurers have long been lobbying the government for more freedom in investing their indemnity funds, which they say is key to ensuring their repayment capacities.

Insurance regulators are reportedly considering allowing insurance companies to buy bonds in foreign markets.

  Today's Top News   Top Business News
+The next great leap after Shenzhou V
( 2003-10-21)
+Hu calls for balanced development
( 2003-10-21)
+Report: SARS not airborne virus
( 2003-10-21)
+Japan urged to resolve weapons issue
( 2003-10-21)
+Int'l AIDS group opens Beijing office
( 2003-10-21)
+Home-appliance giants want wheels
( 2003-10-21)
+Exchange-rate reform under study
( 2003-10-21)
+Health insurance sector called for
( 2003-10-21)
+SanDisk teams up to open outlets
( 2003-10-21)
+Housing prices start to sag in Shanghai
( 2003-10-21)
  Go to Another Section  
  Article Tools  
  Related Articles  

+Ping An to provide insurance to oversea students

+Foreign students to enjoy insurance coverage

+China Life restructures for overseas listing

+Prudential, CITIC open joint venture in Beijing

+New freedom for insurers

+Insurance threshold lowered

+PICC planning IPO to finance expansion

        .contact us |.about us
  Copyright By chinadaily.com.cn. All rights reserved