SHANGHAI, Nov 22 (Reuters) - China’s insurance regulator is considering allowing insurers to allocate their funds to commodities and long-term property rentals, the Securities Times quoted an official as saying on Wednesday.
Ren Chunsheng, head of the department supervising fund allocation at the China Insurance Regulatory Commission, said letting insurers invest their funds elsewhere would help deepened reforms, the report said. The comments come after a months-long crackdown on corruption in the insurance industry which has netted high-ranking officials and seen greater scrutiny on where funds are invested. Ren, who spoke at a conference, said the insurance industry should improve risk management and explore the use of its funds for financial derivatives, hedging and managing risks.
He also said authorities have made headway in containing aggressive investment behaviour. During the year, China has tightened rules on acquisitions abroad as part of a broader campaign against what Beijing calls “irrational” investments that has targeted sectors including property, entertainment and sport. (Reporting by Engen Tham; Editing by Shri Navaratnam)