Supervision of the Government for Insurance Companies Buying into Listed Companies

As the new rules about investment of insurance funds(1), the blue chips of high divided yield to be the object of active investment in insurance funds. As the time mismatches of investment projects and the sources of funds, the risks of interest due to spread loss become increasing. At the same time, the insurance company and the major shareholders of the equity dispute led to the listing of the company's business risk and other issues. This paper proposed several advices. As for insurance companies, insurance industry should build stress-testing mechanism of dynamic balance of assets and liabilities, and establish the reasonable matching model of investment and cost-benefit. The development of insurance companies and the listed companies should make an alliance and form a joint venture. As for regulatory system, China Insurance Regulation Commission should limit the scope of universal insurance, adjust the investment of stocks, increase the minimum capital of requirements of stocks investment, and stress the information announcement. The regulation institutes should raise more cooperation, and bring into correspondence with each other.