CIRC Publishes Offshore Investment Guidelines

The China Insurance Regulatory Commission (CIRC) has issued the "Provisional Measures for the Administration of Utilisation of Insurance Funds", effective 31 August 2010, which apply to capital and assets of Chinese insurance group holding companies and insurance companies. The Measures set out the investment scope for insurance funds in domestic Chinese markets as well as offshore investments. In a separate "Notice on Adjustment of Relevant Issues on Insurance Funds Policy", the CIRC set out the framework for investment limits and types of instruments with respect to domestic investments and, more interestingly for foreign fund managers and markets, the permitted scope of offshore investments. Offshore investments are limited to publicly offered bonds and securities investment funds in the offshore capital markets, and publicly listed equities. More detailed rules are anticipated with respect to the offshore markets. http://www.deacons.com.hk/eng/knowledge/knowledge_393.htm#0