China insurers may face tough property rules, says paper

BEIJING: China is preparing to issue relatively restrictive rules governing insurance companies' investment in real estate, the official China Securities Journal reported on Wednesday (April 14).

The rules will not allow Chinese insurers to invest in residential housing or to invest directly in commercial property, the newspaper quoted an unnamed source as saying.

Nor will insurance companies be permitted to participate in property development projects, according to the source.

The paper did not say exactly how insurers would be allowed to invest in the sector.

The newspaper quoted the top insurance regulator, Wu Dingfu, as saying that the new rules would come out very soon. -- Reuters