Detailed rules for implementation of regulations on insurance capital's investment in real estate industry will come out before the end of October, according to China Insurance Regulatory Commission (CIRC). Insurance giants including China Life Insurance (Group) Company, Ping An Insurance (Group) Company of China and the People's Insurance Company (Group) of China (PICC) have already started their cooperation with real estate developers to catch the chance.
Analysts pointed out that making real estate a new channel for insurance capital investment would bring insurers stable long-term income.
Ping An Insurance's subsidiary, China Ping An Trust & Investment Co., Ltd., has joined hands with Gemdale Group and Greentown Group. China Ping An will invest in prime pieces of real estate through Ping An Trust's third-party assets management service.
China Life Investment Holding Co., Ltd., a subsidiary of China Life Insurance, signed a strategic cooperation agreement with China Cinda Asset Management Corporation. The two companies will cooperate in businesses including commercial property, hotel investment and property management. It is reported that China Life Insurance was considering cooperation with Financial Street Holding Co., Ltd. in property field.
PICC Investment Holding Co., Ltd. under the PICC has also signed cooperation agreement with Financial Street Holding.
Chinese insurers' enthusiasm for the real property market is the result of the historical restrictions on insurance capital investment.
Other countries' experience revealed that only if the annual yield of an insurer's insurance capital is higher than 7 percent, can the company realize sound development. In contrary, Chinese insurers' average annual yield is around 4 percent. It was partly caused by restrictions on investment channels, noted some experts.
By People's Daily Online
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