Shanghai-based AXA-Minmetals Assurance Co, a 51-49 joint venture between Europe's No. 2 insurer AXA and China Minmetals Corp, has won approval from the China Insurance Regulatory Commission to invest in Hong Kong H-shares and red chips, the Shanghai Securities News reported, citing sources.

The company becomes the first insurance joint venture in China to gain such a license under the qualified domestic institutional investor (QDII) program, the report quoted sources as saying.

AXA-Minmetals Assurance will be authorized to invest up to 5 percent of assets from the previous year's accounting period in the Hong Kong stock market, the report added.

Also reportedly applying for QDII licenses are Aegon-CNOOC Life Insurance Co, a 50-50 joint venture between Aegon NV and the China National Offshore Oil Corp (CNOOC), and Allianz China Life Insurance Co, a 51-49 joint venture between Allianz AG and China's CITIC Trust & Investment Co.

Earlier, domestic insurers including Ping An, Huatai, Sino Life and Taiping Life won approval to invest up to 5 percent of their assets in H-shares and red chips.

Insurers also need to obtain a quota from the State Administration of Foreign Exchange (SAFE) before initiating investment overseas.

Only Taiping Life has announced a SAFE quota of around HK$2 billion so far.

In July, the CIRC issued revised rules allowing Chinese insurers to invest up to 15 percent of their total assets in overseas markets. The new rules will facilitate the conversion of yuan-denominated assets into foreign exchange for investment in overseas equities products, including options.

Previously, only China's top three insurers, China Life, Ping An and PICC, were authorized to invest overseas with a combined quota of about $3.5 billion under the QDII program. The three had been restricted to investing in fixed income products using their own foreign exchange assets.