Tuesday, July 24, 2007

China Will `Soon' Allow Insurers to Invest More Overseas, Regulator Says

(Bloomberg) -- China will ``soon'' allow the
nation's insurers to put more of their assets overseas to
compensate for higher interest rates at home, the industry
regulator said.

China's central bank on July 20 raised its benchmark
lending and deposit rates after a report showed the nation's
economy grew at the fastest pace in 12 years in the second
quarter. Higher rates draw demand away from fixed-income and
savings-substitute products offered by insurers, said a
spokesman for China's insurance regulator.


Read more at Bloomberg Emerging Markets News

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