News eDaily25 May 2017

China:CIRC exhorts insurers to invest in large projects

25 May 2017

Insurance funds are expected to invest in major projects that will play a significant role in boosting the economy, says the CIRC.

In a circular issued on Monday, CIRC says that these projects will be given easier access to debt investment by insurance funds if the borrowers have a high credit rating, reported the Xinhua News Agency.

Such projects are mainly in the areas of water conservation, energy, transportation, high technology and advanced manufacturing, with large-scale investment and controllable risks, the CIRC says.

For insurance funds to make debt investments in major projects under the Belt and Road initiative, an economic outreach programme, procedures will be simplified.

The CIRC pledges to do more to channel insurance funds into the real economy. Insurance funds should serve the real economy and help supply-side structural reform, the CIRC said earlier this month.

The regulator has stepped up supervision over insurance funds after some insurers used leveraged money to buy shares in listed companies, triggering market volatility.

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