Insurance funds into housing construction risk prevention needed policy refinement

Following China Turbo (601,601, unit 's) first launched "Pacific (601,099, unit 's)-Shanghai Public leasing room project claims investment plan" Hou, recently China peace (601,318, unit 's) and Shanghai City cast holding (600,649, unit 's) Agency launched 7 years period "peace-city cast holding protection room project claims investment plan", raised funded does not over 3 billion yuan for support Shanghai supportability housing construction. Funding gap is a challenge to China's security housing construction. Since the introduction last year of the interim measures for the insurance fund investment real estate real property after clearing the obstacles for the investment of insurance funds, insurance funds began to frequent the layout guarantees housing market in the near future. Recommended reading insurance weekly: variable amount annuity pilot started Beijing Shanghai five city first wins insurance enterprises violations promotions penalty 500,000 insurance ring "Wang yawei" emerge surface exaggerated income does not to risk silver insurance disputes constantly should first to family "pillar" Shang foot insurance regardless of from lost insurance is zehui Shi Qiming jointly immortal see disk build boutique lecture according to understanding, except above two large project outside, build-up 7 large insurance assets company insurance funds of Beijing protection room project plan also are entered approval stage. Chinese insurance group President Wu Yan also said a few days ago, protection of the present and some local Governments negotiate the protection project. Professor, Department of capital economy-trade University insurance Tuo Kunitaka believes that with the further expansion of the insurance industry as well as the rapid growth in the scale of premiums, increasing pressure to show insurance investment and asset allocation requires new investment channels for preservation and appreciation of, and protect the housing project as the Government is vigorously promoting livelihood projects, income stability and high security for insurance asset configuration has a certain appeal. It is understood that the current peace plans to raise the debt limit of not more than $ 3 billion, for a period of 7 years, calculation of interest rates is divided into two parts, 50% in accordance with a fixed interest rate of 6.4532% of the amount of debt interest; another 50% in accordance with the people's Bank of loan base interest rates to fall in the period 5.1%. Such numbers, 6% is about ping test expected annualised yields of water guarantee housing financing. Tuo Kunitaka said over 10% of insurance funds utilization when compared to 2007 yields, 6% not high, but not very low, and the income stability, should be considered a good investment choice. Last year, China's insurance funds investment income rate of less than 5%. Earnings management of insurance funds $ 51.5 billion in the first quarter of this year, average yields of 1.07%, lower than the Bank's one-year time deposit. The provisions of the interim measures for the insurance fund investment real estate, risk capital investments up to 10% in the previous quarter with total assets of immovable property. By the end of a quarter of the year, total assets of the insurance industry amounted to $ 5.41 trillion, to 10% proportion of domestic insurance funds with over $ 500 billion worth of funds investment real estate. China peace group Chairman peterma think, protection sexual housing construction different Yu General of commercial real estate investment, has local government is responsible for, and specifies land allocated, and provisions profit space, and commitment repurchase, mandatory requirements, for insurance funds,, is risk can controlled, and long-term stability, and guarantees reliable of investment varieties, while also helps reduce insurance funds application on capital markets of rely on of, effective avoiding market fluctuations of risk. Although protection housing market is the industry as a breakthrough innovation investment of insurance funds, but also some experts pointed out that, given the current rules for risk capital investment real estate and the construction of housing-related policy is not clear, insurance funds to enter the security risks of the housing market should not be overlooked. In addition, some experts pointed out that, the insurance company investment yields relative to long-term Treasury bonds of the room and a large deposit and little advantage of the agreement, risk capital participation in the protection insufficient direct interest-driven housing construction. China life former Chairman Yang Chao has said, to get more social funds to enter the security housing market, the Government should be introduced as soon as possible associated with participation in housing investment protection and management of insurance funds rules and policy preferences, including tax breaks. In a recent press briefing, China insurance regulatory Commission official said, China insurance regulatory Commission support insurance funds according to the rules involved in the protection room construction according to law, is studying appropriate access mechanisms, promoting related work. Tuo Kunitaka said that with the continuous improvement of related policy refinement, risk capital investment guarantee the prevention of risk, income has improved, insurance enterprises involved in protecting the enthusiasm of housing construction will be further enhanced. (Xinhua)