China Insurers Can Help Tackle Share-Backed Loan Risks: Journal
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China is encouraging insurers to invest in listed companies and help cut liquidity risks connected with the pledging of firms’ shares to secure loans, the China Securities Journal reported on Saturday, citing a senior official with the banking and insurance regulator.
The government welcomes insurance companies making financial and strategic investments in quality, private, listed companies, the official newspaper cited Ren Chunsheng, of the China Banking and Insurance Regulatory Commission, as saying. The insurers can play a “more flexible” role in cutting share-pledge risks, Ren said at a forum.