China Life looks to invest in private equity market

China Life<601628><2628>, the nation's largest insurer, said it hopes the Chinese government will open door to insurers to invest in the inchoate domestic private equity market.

A relevant proposal has been submitted to the annual session of CPPCC held in Beijing by Yang Chao, president of China Life. Meanwhile, lenders and brokerages are also claiming to form their own private equity funds.

The central government is working on formulating legal structures that would allow western-style private equity firms to set up RMB-denominated funds.

In addition, China will expand more investment channels for insurers to boost their revenue sources but it will be made at appropriate pace and under close scrutiny by regulators, analysts said.