CIRC may open up RQFII programme to insurers
31 October 2012
News, Asia, China, Hong Kong
By Hui Ching-hoo
The China Insurance Regulatory Commission (CIRC) is considering allowing domestic insurers to participate in the RMB Qualified Foreign Institutional Investors (RQFII) programme.
Citing market sources, Shanghai Securities Journal reported on Tuesday (October 30) that the CIRC is in talks with the China Securities Regulatory Commission (CSRC) aimed at permitting insurance companies to channel their insurance assets to the RQFII businesses of their Hong Kong-based affiliates. The initiative aims to broaden the investment scope of insurance capital and to repatriate overseas RMB back to the onshore market.
In addition, the market watchdog is considering removing the investment ceiling for insurers investing in overseas non-listed companies. The current guidelines stipulate that Mainland insurers can only purchase stakes of up to 15% in overseas non-listed companies, and up to 10% of firms in emerging countries.
China’s insurance asset management industry landscape underwent significant change this year following the CIRC permitting local insurers to delegate their asset management operations to third party fund managers and securities brokerages in July.
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