22 November 2018

Insurance funds worth 60 bln yuan looking for asset managers

Several mainland insurers, including China Life Insurance Co. Ltd. (02628.HK, 601628.CN) and Ping An Insurance (Group) Co. of China Ltd. (02318.HK, 601318.CN), are looking for asset managers to oversee funds worth a combined 60 billion yuan (US$9.62 billion) in a trial program, the China Securities Journal reported Wednesday.

China Life is said to be inviting bids from asset managers for 20 billion yuan funds. Meanwhile, Ping An Insurance, which commissioned about 5 billion yuan last year to four asset managers, plans to add between 20 billion and 25 billion yuan, of which 2 billion yuan is for overseas investment. China Pacific Insurance (Group) Co. Ltd. (CPIC; 02601.HK, 601601.CN) is also said to be seeking managers for 20 billion yuan fund.

It is expected that the total amount provided by insurers to asset managers this year will reach 100 billion yuan.

According to some industry insiders, Huatai-PineBridge Fund Management, Harvest Fund and four others, have joined the race to manage China Life’s funds. The result is expected to be out in May.

The commissioned investment of insurance funds is based on management rules published by the China Insurance Regulatory Commission in 2012. At present, equity investment accounts for just 10 percent of approved insurance funds, against the 30 percent cap set by the regulator.

– Contact HKEJ at [email protected]



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