China’s top financial regulators have issued draft rules governing the issuance of perpetual bonds by insurers in the world’s second largest insurance market.
The rules, issued by the People’s Bank of China and the China Banking and Insurance Regulatory Commission, seek to protect investors and improve the capital replenishment and resilience to risk of insurance firms operating in China, Reuters reported. The rules also state that insurance holding firms are prohibited from issuing such perpetual bonds.
Since 2015, Chinese insurers have been allowed to sell bonds as a way to raise capital and strengthen their reserves. With solvency