Big Four banks to invest in insurance

China's banking and insurance regulators have approved investment in insurance companies by commercial banks. The news comes three months after the regulators signed a memorandum of understanding agreeing to strengthen and deepen their cross-industry co-operation.

Lai Xiufu, an official from the China Banking Regulatory Commission (CBRC) announced on April 13 that his authority had reached an agreement with the China Insurance Regulatory Commission (CIRC) to allow insurance investment by banks. The following day, the CIRC said that Beijing Bank and Bank of Communications would be allowed to invest in two insurance companies, China Life-CMG Insurance Co and Pacific-Antai Life Insurance Co.