News Regulations21 Aug 2018

China:Insurers urged to support infrastructure and export oriented firms

21 Aug 2018

China will increase funding to support weak links in the country's infrastructure, the banking and insurance regulator has said.

Insurance funds should support key projects via various financing channels including debts, stocks, or the combination of both forms, the Xinhua news agency reported, citing a CBIRC statement.

The country will step up credit support for infrastructure projects with sound capital base and good operation, on the condition that the funding won't add up to the hidden debt burden of local governments, the statement said.

Based on analysis of ongoing infrastructure projects, banks and insurers should meet reasonable financing demand in accordance with principles for market orientation and give necessary support to unfinished projects.

The regulator also asked banks and insurers to step up financing for various sectors in the real economy, with favourable policies to be given to export-oriented companies and the private sector, according to the statement.

The call by the CBIRC on banks and insurers to meet appropriate funding needs was made amid the current uncertainty in the Chinese economy, in part because of a growing trade row with the US.


 

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