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China Eases Rules on Insurers’ Investment in Unlisted Firms

Bloomberg logoBloomberg 11/14/2020 Bloomberg News
a man standing in front of a large city: A pedestrian wearing a protective mask uses a smartphone in the Lujiazui Financial District in Shanghai, China, on Friday, March 20, 2020. Most of China is now considered low risk and should return to normal work and life, Premier Li Keqiang said at a government meeting on the coronavirus, which is spreading rapidly in Europe, the U.S. and elsewhere. © Bloomberg A pedestrian wearing a protective mask uses a smartphone in the Lujiazui Financial District in Shanghai, China, on Friday, March 20, 2020. Most of China is now considered low risk and should return to normal work and life, Premier Li Keqiang said at a government meeting on the coronavirus, which is spreading rapidly in Europe, the U.S. and elsewhere.

(Bloomberg) -- China will ease rules to allow insurers to invest in unlisted firms for financial purposes, part of its broader efforts to encourage equity financing.

Insurers will no longer be restricted to investing in financial institutions and those in insurance-linked segments, like elderly care and health care, the nation’s banking and insurance regulator said in a statement Friday.

The watchdog also set up a negative list prohibiting insurers from investing in firms involved in property development as well as those with major default events in the latest three years, among other scenarios. Preferred target companies should be in strategic emerging industries or have a clear intent to pursue an initial public offering, it added.

a man standing in front of a large city: A pedestrian wearing a protective mask uses a smartphone in the Lujiazui Financial District in Shanghai, China, on Friday, March 20, 2020. Most of China is now considered low risk and should return to normal work and life, Premier Li Keqiang said at a government meeting on the coronavirus, which is spreading rapidly in Europe, the U.S. and elsewhere. © Bloomberg A pedestrian wearing a protective mask uses a smartphone in the Lujiazui Financial District in Shanghai, China, on Friday, March 20, 2020. Most of China is now considered low risk and should return to normal work and life, Premier Li Keqiang said at a government meeting on the coronavirus, which is spreading rapidly in Europe, the U.S. and elsewhere.

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