Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Finance

Insurers rise after hike in equity caps

By Jiang Xueqing | China Daily | Updated: 2020-07-21 09:03
Share
Share - WeChat
A bank staff counts RMB and US dollar notes in a bank in Nantong, Jiangsu province on Aug 6, 2019. [Photo/sipa]

Share prices of leading insurance companies rose on Monday after China raised the equity investment cap for insurers to 45 percent of their total assets from 30 percent, to provide more long-term funds to the real economy and capital markets.

In the A-share market, China Life Insurance Co Ltd rose by 9.99 percent to 37.97 yuan ($5.43) per share, and Ping An Insurance (Group) Co of China Ltd by 6.13 percent to 82.8 yuan per share.

The China Banking and Insurance Regulatory Commission said on Friday that it will set different requirements for different insurers on how much insurers can invest in equity assets.

For example, for an insurer whose comprehensive solvency adequacy ratio was above 350 percent at the end of the previous quarter, the outstanding balance of its investments in equity assets should not go beyond 45 percent of its total assets at the end of the previous quarter.

For an insurer whose comprehensive solvency adequacy ratio was lower than 100 percent at the end of the previous quarter, however, the outstanding balance of its investments in equity assets should not surpass 10 percent of its total assets at the end of the previous quarter, and the insurer should immediately stop making new investments in equity assets.

Data from the CBIRC shows that the average comprehensive solvency adequacy ratio of insurers included in the deliberation of a regulatory meeting was 244.6 percent at the end of the first quarter.

"We will implement differentiated regulation on insurers' equity asset allocation under the premise that risks will be controlled effectively. By supporting those insurers with an adequate level of solvency capacity, good financial conditions and strong risk tolerance to moderately increase the proportion of their equity asset allocation, we will give full play to the advantages of insurers to provide long-term, stable funds to the real economy and capital markets," said a regulatory official in a post on the CBIRC's website on Friday.

"Every time regulatory authorities relax regulations on the proportion of an insurer's investments in equity assets to its total assets, the move will bring tremendous returns to the insurance sector, especially leading insurers, and promote rapid development of capital markets," said Wang Guojun, a finance professor at the University of International Business and Economics in Beijing.

"The regulator's objectives for making this move are very clear-to provide funds for capital markets, promote the development of capital markets and increase insurance companies' return on investment."

Another goal of the regulator is to push ahead with a reform on classified regulation of the insurance sector by further clarifying which insurers are allowed to do which things, Wang said.

"The revisions to regulations will help insurers improve their comprehensive solvency adequacy ratios, risk conditions, and asset and liability management capacity. Granting looser policies to the insurers whose performance indicators are better will incentivize them to move forward in a better direction," he said.

In his view, it is a good time for insurance companies to invest in the capital markets now.

However, it is hard to say how much money insurance companies will inject into capital markets in the short run because the companies have to go through a series of internal procedures and sell other types of assets they hold before making large investments. More importantly, their senior management team must reach a consensus on the forecast that capital markets are surging, he said.

"More money will flow from insurers, especially quality insurers whose relevant performance indicators meet regulatory requirements, into capital markets if the insurers have a bullish attitude toward the development of capital markets," he said.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 久久精品中文騷妇女内射| 看黄色免费网站| 国产精品国三级国产aⅴ| groupsex娇小紧的5一8| 无毒不卡在线观看| 五月综合色婷婷| 欧美日韩电影在线| 亚洲色欲久久久综合网东京热| 精品国产精品久久一区免费式 | 久久久影院亚洲精品| 欧美videos欧美同志| 亚洲欧洲无卡二区视頻| 激情综合婷婷色五月蜜桃| 免费澳门一级毛片| 精品无码久久久久久久久久 | 国内大量揄拍人妻精品視頻| gay在线看www| 妖精视频在线观看免费| 中文字幕人妻无码一夲道| 日本二区免费一片黄2019| 久久综合香蕉国产蜜臀AV| 樱桃视频影院在线观看| 亚洲国产成人精品无码区在线观看 | 日本人的色道免费网站| 国产精品成人99一区无码| 91香蕉短视频| 在线播放国产一区二区三区| a毛片在线还看免费网站| 好吊视频一区二区三区| 一区二区不卡久久精品| 岳一夜被你要了六次| 一级毛片在线不卡直接观看| 成人无码精品1区2区3区免费看 | 日本人亚洲人jjzzjjzz页码1| 久久婷婷五月综合国产尤物app| 日韩精品无码一区二区三区四区| 五月婷婷在线免费观看| 最近最新中文字幕2018 | 久久亚洲国产精品成人AV秋霞| 日韩免费a级毛片无码a∨| 久久精品国产99久久丝袜|