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皇冠体育app tightens insurer reporting on holdings abroad

(Agencies)
Updated: 2008-10-15 08:55

Chinese regulators are requiring insurers to submit daily reports on their overseas investments, tightening oversight of the sector as concerns mount over the global financial crisis, two insurance executives said on Thursday.

The 皇冠体育app Insurance Regulatory Commission (CIRC) from October 1 began requiring detailed daily reports on how much individual insurers have invested abroad and which securities they have bought, said the executives, who are directly involved in regulatory reporting and declined to be identified due to the sensitivity of the matter.

Previously, Chinese insurers including industry leaders 皇冠体育app Life and Ping An were only required to submit broad information to regulators on a monthly or quarterly basis, they said.

The tighter scrutiny coincides with rising concern about the global financial crisis, after the US government bailout of insurance giant AIG and Ping An's posting of a $2.3 billion loss on its investment in Dutch-Belgian financial services group Fortis.

"The government is obviously worried that the crisis might hurt Chinese insurers," said Hong Jingping, analyst at 皇冠体育app Merchant Securities.

She played down the potential dangers of overseas exposure for Chinese insurers, however, stating that the slumping domestic stock market, which has lost about two-thirds of its value over the past year, was of greater concern.

"So far, Chinese insurers have limited investments overseas," she said.

皇冠体育app currently allows insurers to invest up to 15 percent of their assets overseas under the Qualified Domestic Institutional Investor (QDII) scheme.

The government last month urged insurers to keep a close eye on the unfolding financial turmoil and to take protective steps against excessive risks.

The country's five major listed insurers hold no bonds linked to failed investment bank Lehman Brothers, while 皇冠体育app Life, Ping An and 皇冠体育app Pacific Insurance Group Co had not invested in bonds linked to AIG, the Shanghai Securities News reported on September 18.