China plans to allow insurers to invest up to 15 percent of total assets in overseas markets including stocks, funds and fixed-returns products. This is the first time insurers are allowed to invest in stocks overseas, helping them have more investment channels for higher-return products. 　
　
But overseas investment by insurers can't surpass 15 percent of their total assets in the previous year and the watchdog will approve specific quota case by case. Possible overseas investments include stock, funds, options, deposits, bonds, commercial bills and other products allowed by the insurance regulator.

Insurers can use their own foreign currency assets or convert their Yuan assets to forex for the overseas investment. Insurers should invest in mature capital markets where credit rating was leveled at A or higher, the rule said.

The insurance regulator will decide whether to allow insurers to invest overseas within 20 days once it gets the application. Insurers also have to apply for a quota from State Administration of Foreign Exchange after gaining approval from the insurance regulator.

With the new rule, China is adding investment channels for insurers. Insurers can invest in infrastructure, bonds, deposits and Chinese mainland stock markets now. A limit on investment in high-risk and high-returns assets such as the stock market has been a hurdle for them to seek higher profits.

China's insurance premiums hit a record high of 518 billion Yuan (US$64.75 billion) at the end of November, a year-on-year growth of 13.8 percent. The premiums are set to top one trillion yuan by 2010 with total industry assets topping five trillion yuan in the same period.