Domestic insurers' investments rise 60%

In the first 11 months this year, Chinese insurers' investments increased 60%, mounting up to RMB 1.83 trillion, reported by China Insurance Regulatory Commission (CIRC) on Wednesday.

20 Chinese insurers received permission to invest overseas in 2006. They are mainly allowed under the QDII scheme to invest in the Hong Kong stock market. Among the 20 insurers, Ping An<601318><2318>, China Life<601628><2628>, Taikang, Sino Life and American International Assurance were the first five insurers allowed to invest in the Hong Kong market last year.

In July 2007, CIRC, the People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) released the Temporary Measures on Overseas Investment of insurance Funds, allowing domestic insurers to invest overseas using up to 15% of assets, comparing to the former 5%.

Of all the investments in Hong Kong stock market, the Chinese insurers' investments are mainly in H-shares and red chips. Shares of mainland companies and overseas companies with their main business derived from the mainland have become their top investment choice.