Securities and fund firms OK to invest insurance money

The China Insurance Regulatory Commission has introduced interim measures allowing securities and fund companies to manage investments of insurance money, according to a report published on the commission's official website on Monday.

The report said insurance companies, starting in 2003, had usually managed insurance money by themselves or entrusted that task to insurance asset management companies.

The report said most small and medium-sized insurance companies are developing their businesses rapidly. But their ability to invest is relatively insufficient.

As a result, investment management agencies, which have strengths in controlling risks, are being required to manage insurance companies' assets.

The interim measures call on securities and fund firms, as well as insurance asset management companies, to manage investments of insurance money. Entrusted insurance funds are being required to invest mainly in bonds, stocks and other funds.