Assistance for China's insurers By Xiao Zhang (China Daily) Updated: 2004-06-23 08:47
Senior government officials yesterday vowed to support Chinese insurance
companies in their attempts to tap international capital markets and explore
ways to invest in overseas markets to boost returns.
At the China Insurance Conference - On the Way to International Capital
Markets, the officials also stressed the urgent need for insurance firms to
enhance their roles as institutional investors to allow the swift growth of
domestic capital markets.
Wu Dingfu, chairman of the China Insurance Regulatory Commission, said the
recent expansion by the local insurance industry into international capital
markets had promoted the development of China's market system, strengthened
local insurers, and helped improve their management and product and service
innovation.
"We will support more insurance companies as they push to list on
international capital markets," he told the forum.
PICC Property and Casualty Co Ltd and China Life Insurance Co, the nation's
largest property and life insurance firm, respectively launched global initial
public offerings (IPOs) late last year with great success. Ping An Insurance
(Group) Co of China, the nation's second-largest life insurer, followed suit
earlier this week with its IPO in Hong Kong. It is expected to start trading
tomorrow.
Wu also pledged to continue implementing the outward looking strategy for the
local insurance industry, which other commission officials say includes
encouraging Chinese insurers to seek business overseas and raise funds in
international capital markets, in addition to allowing them to invest in
overseas capital markets.
Prior to the conference, senior government officials said the State Council
had approved in principle a plan to allow insurers to invest in overseas capital
markets, which would boost their repayment capacity. But Meng Zhaoyi, deputy
director of the commission's International Department, told reporters: "There is
no timetable yet."
