Investment in Chinese insurance funds jumps 60% in 2013

15 January 2014   Category: News, Asia, China   By Asia Asset Management

Mainland insurance funds racked up hefty investment revenue growth of 60% for the first 11 months of 2013 taking the accumulated total to 327.2 billion (US$51.93 billion) by the end of November, according to a report from Beijing Business Today on January 14. 

Speaking at a recent wealth management forum in Beijing, China Insurance Regulatory  Commission (CIRC) Vice Chairman Chen WenHui said he was upbeat about the pickup in insurance fund investment. New issues of insurance investment products reached a new high of 345.2 billion RMB in 2013, equivalent to the total accrued over the previous seven years.

Mr. Chen said he expects insurance funds to further increase their exposure to alternative asset classes in line with ongoing regulatory reforms, adding that the CIRC has been loosening controls on fixed income, equity, and overseas investments for insurance funds. 

In October 2012, the CIRC issued a slew of new regulations aimed at reforming the insurance asset management sector, which included allowing insurers to invest overseas, expanding the capabilities of insurance asset managers i.e. permitting them to launch mutual funds, and further liberalisation for insurance funds entering the Mainland market. 

As its latest initiative, the CIRC released a consultation paper entitled Interim Measures for the Administration of Utilisation of Insurance Funds on January 13 – the paper focuses on regulating the utilisation of insurance funds, protecting the legitimate rights and interests of insurance parties, and promoting the sustainable and sound development of the insurance industry.