News eDaily19 Sep 2017

China:CIRC to tighten control over overseas investments by insurers

19 Sep 2017

China will strengthen its supervision of overseas investment risks and capital flows from insurance funds, reported Reuters citing the insurance regulator. CIRC said yesterday that it will urge companies to improve their risk monitoring systems.

China has cracked down this year on "irrational" overseas investment which it suspected was one way of disguising capital flight as the yuan currency weakened.

The CIRC will step up supervision over the use of insurance funds, with the focus on "chaos" such as irrational stock market fundraising and overseas acquisitions, said Guo Jing, vice head of the finance and accounting department of the CIRC.

"The regulator will prevent risks stemming from an excessively rapid growth in overseas investments, via window guidance from authorities and stepped-up information disclosure," he said.

The insurance regulator will also urge insurance companies to conduct self-checks on their property investments, said Mr Guo. It will continue to strictly control insurance money from flowing into property markets and prohibit funds to directly or indirectly invest in commercial buildings, he added.

Mr Guo said CIRC will prevent risks stemming from peer-to-peer (P2P) lending and Internet finance from spilling over into the insurance industry.


 


 


 

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