Insurers clear on investing in PEs
By Maggie Zhang |
September 7, 2010, Tuesday
|
Print Edition
Print Edition
CHINA'S insurance regulator has for the first time made clear its stance on insurers investing in the growing private equity market in the country.
Chinese insurers can invest up to 5 percent of their assets in private equity and 10 percent in real estate, the China Insurance Regulatory Commission said on its website.
The CIRC gave them the green light to invest in private equities and real estate to broaden their investment options.
Insurers are, however, banned from investing in venture capital or equities of high-pollution, high-consumption companies, the CIRC said late Sunday, citing new rules regarding investment in the two sectors.
Private equities have grown rapidly in China in recent years. Previously, some insurers eyed investment projects in the sector but the lack of clear regulations deterred their investment in the segment.
In the first half of this year, more than US$19 billion were raised through private equity funds, a surge of 616.9 percent from a year ago. It surpassed the total capital raised in 2008. Thirty-two funds raised capital in the first half, up 191 percent from a year ago, bouncing back to a high in 2007.
In August, the CIRC issued new rules to let insurers expand their investments in stocks, infrastructure and real estate. Insurers are now clear they are banned from developing properties directly, or investing in commercial properties or setting up real estate development companies on their own.
Chinese insurers can invest up to 5 percent of their assets in private equity and 10 percent in real estate, the China Insurance Regulatory Commission said on its website.
The CIRC gave them the green light to invest in private equities and real estate to broaden their investment options.
Insurers are, however, banned from investing in venture capital or equities of high-pollution, high-consumption companies, the CIRC said late Sunday, citing new rules regarding investment in the two sectors.
Private equities have grown rapidly in China in recent years. Previously, some insurers eyed investment projects in the sector but the lack of clear regulations deterred their investment in the segment.
In the first half of this year, more than US$19 billion were raised through private equity funds, a surge of 616.9 percent from a year ago. It surpassed the total capital raised in 2008. Thirty-two funds raised capital in the first half, up 191 percent from a year ago, bouncing back to a high in 2007.
In August, the CIRC issued new rules to let insurers expand their investments in stocks, infrastructure and real estate. Insurers are now clear they are banned from developing properties directly, or investing in commercial properties or setting up real estate development companies on their own.
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