The State Council approved an application by the China Insurance Regulatory Commission to establish an insurance investment fund, according to a statement released on July 3.
The expected 300-billion-yuan fund will serve as a strategic, active and comprehensive investment platform that gives full play to the insurance industry’s long-term capital advantage, the application said.
With the money raised from insurance organizations, the fund can be a direct investment fund or a fund of funds (FOF).
As a direct investment fund, it will meet the market demands generated from China’s national economic strategies and mixed-ownership reform while as a fund of funds it will be invested in various investment funds at home and abroad, especially those that involve government participation.
The fund will closely follow national industrial policies and development strategies in terms of investment.
It will mainly invest in projects such as the Belt and Road Initiative, the renovation of shantytowns, infrastructure construction, key irrigation works, transport facilities as well as major projects concerning global production capacity cooperation.
It also involves investment in fields such as modern logistics, energy and resources, and small- and micro-sized enterprises.
The CIRC will take the lead in preparing to set up this fund, and making relevant rules. It is also responsible for supervision over the establishment and operation of the fund.