SHANGHAI Feb 9 A senior Chinese insurance
regulator warned against the industry's reckless overseas
investment, saying some insurers behaved recklessly when it came
to offshore acquisitions, the official Securities Times reported
Chen Wenhui, vice chairman of the China Insurance Regulatory
Commission (CIRC) urged insurers to take a cautious approach
when investing overseas, the newspaper said.
"Blind outbound investment" by insurers, often with high
leverage, involved tens of billions of yuan worth of risks in
some cases, Chen was quoted as saying.
"Some companies behave like a little boy rushing into a
candy store when making overseas investment," Chen said.
Chen made the remarks at a time when Beijing is stepping up
efforts to stem capital outflows that adds depreciation pressure
to the yuan, and threatens to exhaust China's foreign currency
Acquisitive Chinese insurers such as Anbang Insurance Group
have been shopping overseas in recent years,
snapping up foreign companies and properties.
Chinese insurers may boost outbound investment by about $100
billion over the next three years, as they seek to diversify
risks, BNP Paribas predicted in December.
($1 = 6.8929 Chinese yuan)
(Reporting by Samuel Shen and John Ruwitch; Editing by Sam