INSURANCE companies can now invest in firms listed on Shenzhen’s ChiNext board, China Securities Journal reported yesterday, a move that may help insurers diversify their revenue streams and potentially bring more stability to the NASDAQ-like startup board.
Insurers should report to the China Insurance Regulatory Commission (CIRC) if their holdings reach or exceed 5 percent, the newspaper said, citing a CIRC statement.
Insurers may not invest in firms listed on the ChiNext board that are under investigation by regulators or those that have been punished or censured by regulators within a year, it said.
They must also avoid companies whose financial statements have failed to win the endorsement of auditors within the past year or firms that are suspected of manipulation, it said.
The ChiNext index jumped 3.90 percent to 1,405.02 yesterday, outperforming the benchmark Shanghai Composite Index that closed 0.15 percent lower at 2,044.34.
The ChiNext market, an alternative for smaller Chinese companies looking to raise funds, was created in 2009 and has fewer listing requirements than the country’s two main boards. The ChiNext index surged 83 percent last year, after posting two consecutive annual losses. (SD-Agencies)
|