Stock Market Access Paves the Way for New Utilization of Insurance Funds
November 30, 2004 | BY
clpstaff &clp articlesAllows insurance companies and insurance asset management companies to directly purchase and trade renminbi-denominated common stock, and to directly purchase convertible corporate bonds and other specified investment product.
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By Dr. Xu Guojian, Partner and Lu Guoming' & Pek-Siang Tee, Legal Assistants, Boss & Young, Attorneys at Law, Shanghai
After more than 20 years of rapid development, with an annual average rate of growth of 30%, China's insurance industry had accumulated total assets of more than Rmb1.1 trillion by the end of July 2004. This growth has placed compelling incentives on insurance companies to find lucrative means and diversified investment channels for handling their funds. Meanwhile, China's capital markets, and especially the stock markets, have been looking for new and long-term sources of funds to promote their continuous, steady and healthy development.