Insurers Preparing for PE Investment

China's new insurance law was put into force from October 1 and according to the revised items, insurers in the country will be allowed to invest in equity in unlisted companies.

Detailed rules for such investment will be released soon and after that, related pilot will be launched. In order to catch the opportunities, many insurers plan to set up special firms to take charge of the investment. China Life Insurance Co., Ltd. (SHSE: 601628 and SEHK: 2628), Ping An Insurance (Group) Company of China, Ltd. (SHSE: 601318 and SEHK: 2318), China Pacific Insurance (Group) Co., Ltd. (CPIC and SHSE: 610601), and Taikang Life Insurance Co., Ltd. have submitted applications to the China Insurance Regulatory Commission, the top Chinese insurance regulator.

Despite of the fallout of the global financial crisis, it is time for them to stretch out reach to such investment, considering both the domestic economy and the domestic stock market, said industry experts.

Source: www.cnstock.com (November 02, 2009)

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