Source: CCTV.com

10-18-2006 10:46

One of the key investors of ICBC's giant IPO is China Life Group and China Life Insurance Company. They're investing over six billion yuan. And it looks like the trend is set to continue. In the latest development, China's insurance regulatory is allowing local insurers to make more investments into banks.

The CIRC says, insurance institutions can invest no more than three percent of their total assets in state-owned commercial banks, joint-stock commercial banks and city commercial banks. That means that up to 45 billion yuan in insurance capital could be poured into China's banking sector this year. The commission also said that insurers could use their registered capital and provisions over 10 years for the investment. By the end of last year, the total assets of China's insurance sector reached 1.5 trillion yuan.

 

Editor:Ge Ting