China lets insurers invest in ChiNext startups - paper

SHANGHAI Tue Jan 7, 2014 8:16pm EST

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SHANGHAI Jan 8 (Reuters) - Insurance companies can now invest in firms listed on Shenzhen's ChiNext board, the China Securities Journal reported on Wednesday, a move that may help insurers diversify their revenue streams and potentially bring more stability to the NASDAQ-like startup board.

Insurers should report to the China Insurance Regulatory Commission if their holdings reach or exceed 5 percent, it said, citing a CIRC statement.

Insurers may not invest in firms listed on the ChiNext board that are under investigation by regulators or those that have been punished or censured by regulators within a year, it said.

They must also avoid companies whose financial statements have failed to win the endorsement of auditors within the past year or firms that are suspected of manipulation, it said.

The ChiNext Composite Index ended Tuesday at 1,279.052 points, up roughly 80 percent from Jan. 7 last year. (Reporting by John Ruwitch; Editing by Chris Gallagher)

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