Pursuant to the measures, insurance firms are permitted to invest at most 5% of their total assets at the end of the previous year in the realty, at most 5% of their total assets at the end of the previous year in equities in companies that have not listed and industrial funds.
Noticeably, the insurance firms are not permitted to make investment in residential houses for residents, commercial real estate directly, and real estate development.
Once the measures take effect, about CNY 200 billion insurance funds will be able to seek proper opportunities in the nation's strategic structure adjustment.
By far, only some large-sized insurance firms have made experiments in the investment in equities in companies that have not listed. For instance, China Life Insurance, the largest life insurer in the nation, made investment in China Southern Power Grid and Guangdong Development Bank. China Reinsurance (Group) Company last August spent CNY 3.3 billion buying 1.5 billion shares in China Everbright Bank.
