China will cap investments by insurance firms in non-listed Chinese banks at a maximum 5% of an insurer's total assets, as Beijing hopes to limit risks while widening investment channels for cash-rich insurers.

Rules governing insurers' investments in banks, to be issued soon, will also ban insurance companies from buying bank stakes with money obtained from subscriptions to their investment products, because those products already focus on clear investment areas.

Top life insurer China Life Insurance Co Ltd and Ping An Insurance have been among the vocal proponents for increased investment options, including investment in banks, as their premiums swell with rapid business growth. 

Ping An has bought a controlling 89% stake in non-listed Shenzhen Commercial Bank, while China Life has bought a 1.75% stake in Industrial Bank Co Ltd.

Source:佚名