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    Greater China
     Sep 9, 2005
Rules on insurance investments to be issued

BEIJING - China's Insurance Regulatory Commission (CIRC) is to formulate and issue a series of regulations and rules to control investment risks and formulate policies best suited to Chinese conditions and conforming to international development trends, said CIRC Vice-Chairman Wu Xiaoping.

The regulations and rules will include the detailed rules for the implementation of the regulations on the management of insurance foreign exchange funds in their overseas operations,

 

which is scheduled to be issued in September 2005. The rule is expected to open up a channel for insurance foreign exchange funds to invest in the international financial market.

In addition, CIRC will also issue other regulations and rules, including Interim Rules on the Management of Insurance Funds, a Guide to Insurance Assets Management and Corporate Governance, and Rules on the Management of Employees Managing Insurance Assets.

The rules on Insurance Funds will further clarify the relations and the division of labor among the principal, agent and trustees from the perspective of institutional arrangements and legal principles so as to improve the operational efficiency and governance structure. The Guide to Insurance Assets Management and Corporate Governance will borrow international experience to help insurance assets management companies improve their standards of governance and introduce overseas strategic investors.

CIRC will guide the whole industry to carry out in-depth studies of financial accounting, information disclosure, performance evaluation and product innovation with regard to insurance investment.

According to statistics, by the end of June, the total assets and balance of operational capital of the insurance industry reached 1,386.9 billion yuan (US$160 billion) and 1261.9 billion yuan, an increase of 17% and 21.5% from the beginning of this year, and annual growth will top 400 billion yuan.

The operation of insurance funds has been growing with momentum and investment returns have improved. The investment return for the whole industry was close to 2% in the first half and could reach 4% for the whole year.

(Asia Pulse/XIC)

 

 
 



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