Beijing: China has approved insurers to hold stakes and invest in property assets of privately-held companies to reduce investment risks.
The rules are aimed at "easing insurers investment pressure and diversifying risks," the China Insurance Regulatory Commission said yesterday in a statement on its website.
Insurers, suffering from a stock market rout, are seeking alternatives to boost investment returns.
China Life Insurance Co posted a 50 per cent decline of net gains on investments in the first half from a year ago as China's stock market tumbled. Still, insurers can't invest in commercial property or be directly involved in real estate development, according to the statement.
China's benchmark Shanghai Composite Index has dropped 19 per cent this year amid concerns that curbs on bank lending and a crackdown on real-estate speculation will strain economic growth.
Insurers can't buy stakes in venture capital firms or companies that the government classifies as polluting and energy-intensive, the statement said.