The decision by the National People's Congress Standing Committee to allow mainland insurers to invest in the real estate market will provide fresh funding for cash-strapped developers, experts say.
It will also broaden earnings sources for insurers that rely largely on income from government and financial bonds.
Liu Yingqi, the vice-president of China Life Insurance, said the company welcomed the change and expected detailed investment rules to follow soon. 'We focus on long-term value and that is what real estate investment could bring. Most importantly, it should generate stable returns,' Liu said.
South China Morning Post