Chinese insurers’ investments abroad
According to BNP Paribas, Chinese insurers will have a foreign investment capacity of 100 billion USD in the course of the upcoming three years. The bank reiterates that the Chinese insurance companies are trying to get diversified by underwriting more stakes in companies based abroad. They are prompted by the will to generate more stable and attractive returns in order to put up with Yuan’s current weakness.
Chinese insurers are entitled to invest up to 15% of their capital abroad. By the end of 2015, they detained 36.7 billion USD in foreign assets, a 51% jump in a single year. This amount, nonetheless, accounts for just 2% of their capital.
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