China will soon release detailed regulations on property investment for insurers, the China Securities Journal reported.
The report cited a source as saying the rule will forbid insurers to invest in residential housing, to invest directly in commercial property or to be involved in the development stage of property projects.
The new Insurance Law that took effect last October allows insurance capital to invest in property, and insurers have been eagerly waiting for specific rules ever since. Many insurance companies, such as China Life and Ping An, have established cooperation with property developers.
China's premium income has increased rapidly, with insurance capital totaling 1.5 trillion yuan ($219 billion).
Wu Dingfu, chairman of the China Insurance Regulatory Commission, said the rules for insurers to buy unlisted companies' shares will also be released.
