Shanghai would launch a pilot project to allow insurers to invest in low-income housing, China Insurance Regulatory Commission chairman Wu Dingfu said.
'We are studying the entry regulations for insurers to invest in such projects,' Wu said on the sidelines of yesterday's National People's Congress session.
He also revealed that the commission had reached an agreement with the Shanghai government to set up the country's first insurance exchange.
The pilot project is considered a key move for the insurance industry to widen its investment channels. According to interim measures launched by the commission in September, mainland insurers may use up to 10 per cent of their funds on real estate projects.
'There's no legal obstacle. We will focus on risk control [when drafting the regulations],' Wu said.
Low-income housing development has been an important part of Beijing's efforts to rein in runaway property prices and honour its pledge to improve people's living standards and well-being.
