Insurance companies will be allowed to invest in equities, corporate bonds, real estate and infrastructure projects according to an amendment to the Insurance Law recently passed by the State Council.
Insurance companies were previously not allowed to conduct such investments without government approval.
Thus is the second round of amendments to the law, and adds nearly 50 new sections concerning investments and supervision of insurance companies, Shanghai Securities News reported recently.
An anonymous law maker told the newspaper that the draft law permits insurance companies to invest in property and also aims to improve the supervision of protection funds and reimbursements.
For more details, please read the complete story in Chinese (http://www.china-cbn.com/s/n/000002/20080805/000000097964.shtml).
(China.org.cn August 5, 2008)
