China's insurance regulator has announced that newly revised rules will come into force on 1 April, aimed at tightening supervision over the overseas investment of insurance funds.
Deputy head of the insurance fund management regulatory department of the CIRC, Jia Biao, said that overseas investment of insurance funds must follow the rules set by the CIRC, the central bank and the foreign exchange regulator.
To prevent outbound investment becoming irrational, China has put a brake on projects in fields including real estate, hotels, cinemas, and entertainment, while investment in sectors such as gambling has been banned, China Daily reported citing the CIRC official.
Shareholders of insurance firms will not be allowed to interfere in the operation of insurance funds, according to the new rules.
Firms commissioned to manage insurance funds should not reassign the funds, and measures to reduce leverage should be strengthened, the rules state.