-
Advertorial
-
FOCUS
-
Guide
-
Lifestyle
-
Tech and Vogue
-
TechandScience
-
CHTF Special
-
Nanshan
-
Futian Today
-
Hit Bravo
-
Special Report
-
Junior Journalist Program
-
World Economy
-
Opinion
-
Diversions
-
Hotels
-
Movies
-
People
-
Person of the week
-
Weekend
-
Photo Highlights
-
Currency Focus
-
Kaleidoscope
-
Tech and Science
-
News Picks
-
Yes Teens
-
Budding Writers
-
Fun
-
Campus
-
Glamour
-
News
-
Digital Paper
-
Food drink
-
Majors_Forum
-
Speak Shenzhen
-
Shopping
-
Business_Markets
-
Restaurants
-
Travel
-
Investment
-
Hotels
-
Yearend Review
-
World
-
Sports
-
Entertainment
-
QINGDAO TODAY
-
In depth
-
Leisure Highlights
-
Markets
-
Business
-
Culture
-
China
-
Shenzhen
-
Important news
在线翻译:
szdaily -> Business -> 
China tightens regulation over use of insurance funds
    2018-01-30  08:53    Shenzhen Daily

THE country’s insurance regulator said Friday newly revised rules will tighten regulation over the use of insurance funds and better serve the real economy.

The new rules, coming into force April 1, will step up scrutiny over the overseas investment of insurance funds, said Jia Biao, deputy head of the insurance fund management regulatory department of the China Insurance Regulatory Commission (CIRC).

Overseas investment of insurance funds must follow the rules set by the CIRC, the central bank and the foreign exchange regulator, Jia said.

To prevent outbound investment from becoming irrational, China has put a brake on projects in areas including real estate, hotels, cinemas, and entertainment, while investment in sectors such as gambling has been banned.

Shareholders of insurance firms will not be allowed to interfere in the operation of insurance funds, according to the new rules. At the same time, insurance funds must only be managed by registered firms and channel entities are not allowed to step in.

Firms commissioned to manage insurance funds should not reassign the funds, and measures to reduce leverage should be strengthened, the rules stated.

“The implementation of the new rules will make better use of insurance funds to serve the real economy, cutting intermediate links and lowering costs,” Jia said.

Authorities have moved to tighten regulation on the insurance sector as they put priority on preventing systemic financial risks.

Starting late 2016, irrational investment behavior such as investment in risky overseas projects has led to huge capital outflows and triggered regulatory concerns, leading to new guidelines issued by both the central bank and the foreign exchange regulator.

While enhancing regulation, the regulator will also strive to further improve returns, according to Jia.

The average investment return of insurance funds remains at proper levels, he said, adding that fixed income accounts for a substantial proportion of the investment structure, ensuring a stable source of investment revenue.

By the end of 2017, total insurance assets increased to 16.75 trillion yuan (US$2.63 trillion), up 10.8 percent year on year compared with the same period in 2016. Investment revenues stood at 83.52 billion yuan by the end of 2017, with 70 percent coming from fixed income investment.

Data from the CIRC also showed that China’s insurance premium income posted a 19.2-percent year-on-year rise in the first 11 months of 2017 to reach 3.44 trillion yuan.(Xinhua)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn