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China: New insurance investment fund could grow to US$46 bln in size

Source: Asia Insurance Review | Feb 2016

A huge insurance fund has been set up for investment in infrastructure and emerging sectors. Expected to ultimately reach CNY300 billion (US$46 billion) in size, the fund kicks off with CNY40 billion.
   The fund is managed by the China Insurance Investment Company, which has 46 shareholders, comprising 27 insurers, 15 insurance assets management firms and four private companies, said the China Insurance Regulatory Commission (CIRC).
   Approved by the State Council last July, the fund will facilitate strategic projects such as housing, urban infrastructure, water conservation and the government’s foreign outreach strategy, the Belt and Road Initiative. It can also invest in emerging industries, logistics, healthcare, IT, environmental protection, and small and medium-sized enterprises. 
   The State Council stipulated that funds must be at least 80% contributed by insurance institutions. Investment decisions will be based on the value and risk assessments of projects.
   In its first investment, the fund will help China Merchants Steam Navigation Company with overseas port projects. It will also support liquefied natural gas projects with Russia.
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