Insurance funds in China to be managed by securities houses

China is likely to allow the insurance funds to be entrusted to fund management companies and securities companies, according to authoritative sources.

The China Securities Regulatory Commission (CSRC) and the China Insurance Regulatory Commission (CIRC) recently had a consultation on some issues including the use of insurance funds and strengthening of regulatory cooperation.

The two top Chinese regulatory bodies said that they will give greater policy support to encourage the long-term funds including the insurance funds into the market.

Specifically speaking, the insurance funds will be granted to be entrusted to fund management companies and securities companies in the form of special account and targeted investment in the future, the sources revealed.

Both sides have developed a high degree of consensus in terms of developing the capital market and promoting the development of institutional investors.

They also expressed their willingness to establish a more smooth communication and information sharing mechanism to strengthen the regulatory cooperation and promote the healthy and stable development of capital markets.

The CSRC regulates the China’s securities and futures markets, while the CIRC supervises the nation’s insurance products and services market. Both organizations are the top regulators of their respective markets in China.

Author: Li Zhenyu
Source: People’s Daily Online