Article
| November 1, 2010
Chinese Insurers - A New Source of Capital for PE Investments
China’s insurance regulator, the China Insurance Regulatory Commission (“CIRC”), issued on 5 September 2010 the Provisional Rules for Insurance Funds’ Equity Investment (“Equity Investment Rules”), which permit for the fi rst time Chinese insurers’ investment in private equity (PE). Unlike their counterparts in the west, Chinese insurers were prohibited from investing in all forms of equity stocks until 2005, when qualifi ed insurers were first allowed to invest in stocks listed on the main board of China’s domestic stock markets. With Chinese insurers having assets of around RMB4.5 trillion (around US$672 billion), the Equity Investment Rules are likely to boost the PE industry in China by opening up a signifi cant new pool of investment capital.
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