More insurers approved to trade stocks
(Shenzhen Daily/Agencies)
Updated: 2005-02-24 15:11

China's insurance regulator had given approval to six insurers to buy domestic stocks directly, a move that could pump up to US$4.8 billion into the country's beleaguered bourses, domestic media said Wednesday.

"The China Insurance Regulatory Commission has granted either securities accounts or trading seats to six insurers. They have been approved to trade stocks directly," an unidentified official said to the Shanghai Securities News.

Among them are China Life, the country's largest insurer, Huatai Insurance, China's fourth-largest property underwriter, as well as State-owned China Reinsurance.

About 40 billion yuan (US$4.83 billion) is now poised to be invested by the insurers in the market. Other firms such as Ping An Insurance are awaiting approval.

Huatai has already directly bought domestic shares, domestic media said Tuesday, the first investment of insurers' assets set to flow into the stock markets.

The government has taken a slew of steps to boost slumping markets after the key index fell 15 percent last year, hit by economic cooling steps, corporate scandals and a spate of share issues.

In the latest move, China planned to create a US$6 billion investment fund by June to support domestic stock markets.

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