25 August 2019

CIRC warns of risks in insurer bond investment plans, paper says

The China Insurance Regulatory Commission has warned insurers of the potential risks in infrastructure-focused bond investment plans, the Shanghai Securities News reported Friday, citing an unnamed industry insider close to the regulator. The risks include debtors’ inability to repay, growing problems with financing platforms, contracts signed with multiple insurers, and signatories acting as both debtors and guarantors, the report said. Rising interest rates have led to more failures of these kinds of  investment plans, it said. A total of 90 plans covering a combined 287.76 billion yuan (US$46.21 billion) were newly registered in 2013, more than the number and coverage for the previous seven years combined, the report said.

– Contact HKEJ at [email protected]



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