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Draft amendments aim to revive property market
Revised Insurance Law set to broaden investment channels
Date:
September 2008
Keywords (click to search): [Insurance Law] [Property Market]
China’s legislature revised the country’s Insurance Law in a bid to provide increased investment channels of insurance funds.
If the draft is passed, investment channels of insurance funds would be widened to marketable securities, such as bonds, stocks, funds, and real estate.
Hubert Tse, managing director and head of international business group at Yuan Tai PRC Attorneys, said that this would be a win-win situation for both the real estate industry and insurers. Recent negative impact related to the government’s credit tightening policies and the anticipated post-Olympics economic slowdown has led to tougher times for developers.
“Insurers money would become a great alternative source of investment for the struggling real estate industry and developers,” Tse said.
The draft is expected to be passed by the end of this year or early in 2009.