China's insurance regulator is aiming to restrict the activities of companies that have a poor record of asset liability management. The Financial Services Commission (FSC) said on Tuesday it was considering whether to ban insurers from using "excessive leverage" in their investment decisions. Companies with lower ratings will be restricted from certain investment activities.
China's insurance regulator is aiming to restrict the activities of companies that have a poor record of asset liability management. Businesses are set to be rated between A and D for their ability to match maturity, cash flow and cost on each side of their balance sheet. Companies with lower ratings will be restricted from certain investment activities.