The China Insurance Regulatory Commission has issued a notice that specifies the proportion of an insurance fund that insurers will be allowed to invest on infrastructure projects. Life insurance companies will be permitted to invest 6 per cent of their total assets, based on values at the end of the last quarter, on infrastructure projects, while property insurance companies could invest up to 4 per cent of their total assets.

Insurance companies can use up to 40 per cent of the allowed investment quota on a single infrastructure project. The proportion, however, could be adjusted for major projects approved by the State Council, reported Xinhua.

In late 2008, the Chinese government allowed insurance companies to invest in infrastructure projects, such as transportation, telecoms and energy facilities. The measure is aimed to increase financing for the country’s Rmb4,000bn economic stimulus package.

Previously, the country’s insurance funds were allowed to invest in bank deposits, government and financial securities, stocks, securities-oriented funds, and in non-listed companies as shareholders.