Chinese insurers allowed to invest in gold

The Chinese government has launched a pilot program allowing ten local insurers to invest in gold.

The companies in question, including PICC Property and Casualty Company and China Life Insurance, may invest up to 1% of their assets in gold bullion, which would translate into a total investment of 200 billion CNY (27.4 billion USD).

This marks the first time that Chinese insurers have been explicitly authorized to invest in a commodity. Until now, companies could only hold assets with stable income streams, such as bonds and equities.