China set to allow insurers to invest in property

Shanghai, May 26: China is set to allow domestic insurers to invest in the country's property market, potentially unleashing billions of dollars in deals for commercial buildings, the China Securities News reported on Saturday.

''Insurance firms' property investment has been approved in principle. There are no regulatory hurdles anymore,'' the paper quoted Zhou Daoxu, vice director of the China Insurance Regulatory Commission's policy research department, as saying.

Rules governing real estate investment by insurers are expected to be issued by the year-end, Zhou told the official newspaper.

China realises that fast-growing insurance firms, flush with 0 billion for investment, need to emulate global peers and diversify risk beyond stocks, bonds and deposits, industry executives have said.

Allowing insurers to invest in real estate would also encourage foreign investors, lured by China's 10 percent annual economic growth, but who need to know that domestic funds can buy their buildings when it's time to exit and take profits.

Reuters>