Insurance funds approved for China's infrastructure sector

The first 12-billion-yuan (1.5 billion U.S. dollars) trial quota of insurance fund investment in infrastructure has been approved by China's State Council, the country's cabinet.

Ping An of China was spearheading the pilot investment with more than 80 percent of the quota, said Sun Jianyi, deputy general manager of Ping An. China's other three major insurers -- the China Life Insurance Group, PICC Property and Casualty Insurance and Taikang Life Insurance -- together would manage two billion yuan (250 million U.S. dollars).

Results of the trial, to be completed this year, would be reported to the cabinet in advance of the next quota, said Sun.

The funds would be invested in a range of projects, including roads, water facilities, electricity and real estate. Insurers are expected to profit from operating rights rather than engaging in construction.

Analysts say over 60 billion yuan (7.5 billion U.S. dollars) of insurance funds are expected to be channeled into the infrastructure sector.

Source: Xinhua