SHANGHAI Dec 13 The chairman of China's
insurance regulator said on Tuesday that the country's insurers
should be long-term money providers and not short-term capital
market "savages", according to a notice posted on the
authority's official website.
The China Insurance Regulatory Commission (CIRC) has been
trying to reduce risks from insurers investing in stocks and
long-term assets using short-term funds that could lead to a
sudden tightening of liquidity in the event of market
"Becoming a friendly player in capital markets should not
allow insurers to become hateful savages, and also should not
allow insurance capital to become a nightmare for capital
markets," said Xiang Junbo, chairman of the CIRC.
On-site inspection should be strengthened, especially in
relation to insurance firms who have a "quick-buy, quick-sell"
attitude to stock investment, Xiang added.
The CIRC must strengthen asset and liability matching
regulation, said Xiang.
Last week, on Monday, China's blue-chip index posted its
biggest drop in six months after the top securities regulator
warned against "barbaric" share acquisitions.
(Reporting by Engen Tham; Editing by Himani Sarkar)