September 9, 2019 / 9:06 AM / 3 months ago

China caps investment insurers can make in their shareholders

BEIJING, Sept 9 (Reuters) - China’s banking and insurance regulator said Monday it would put a cap on the investment insurers can make in their shareholders, a move to curb risks linked to the misuse of financial resources.

Outstanding investments in shareholders or parties related to shareholders must not exceed 30% of an insurance firm’s previous year’s total assets or net assets, the China Banking and Insurance Regulatory Commission (CBIRC) said in a statement on its website.

The CBIRC would also cap investment by insurers into a single related party at up to 15% of its total assets, it said, adding that the rules took effect on Monday.

Reporting by Cheng Leng, Vincent Lee and Beijing Monitoring Desk Editing by Edmund Blair

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