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Chinese insurers apply to set up PE investment companies

Tue. November 03, 2009; Posted: 01:39 AM
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BEIJING, Nov 03, 2009 (Xinhua via COMTEX) -- LFC | Quote | Chart | News | PowerRating -- Chinese insurance giants, including China Life Insurance (601628.SH, 2628.HK, LFC.NYSE), People's Insurance Company of China (PICC) Group, and Taikang Life Insurance, have applied with the China Insurance Regulatory Commission (CIRC) for the establishment of private equity investment companies, following the introduction of the amended Insurance Law on October 1.

Under the amended Insurance Law, insurance companies are allowed to expand their investment channels.

On October 16, CIRC chairman Wu Dingfu urged the CIRC to work out the regulatory details on insurers' asset allocation, equity and real estate investments, and carry out equity and real-estate investment pilots.

The CIRC has said on previous occasions that detailed rules on insurers' equity investments may be issued in the near future.

Private equity investments are in line with insurers' approach to investment, because such investments require an operating cycle of six to eight years, as well as huge capital support.

Chinese insurance companies registered 3.37 trillion yuan of insurance capital by the end of June, which could support PE investments in the future. Enditem

For full details on China Life Insurance Company Limited ADS (LFC) click here. China Life Insurance Company Limited ADS (LFC) has Short Term PowerRatings of 5. Details on China Life Insurance Company Limited ADS (LFC) Short Term PowerRatings is available at This Link.

    


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