Chinese regulator relaxes offshore investment for insurance funds

China's insurance regulator said that it would relax controls on offshore stock and bond investments by domestic insurers, according to a report by Dow Jones.

Until now, investments have been confined to Hong Kong, but the regulator will now let insurers invest in markets in 45 countries or regions, the China Insurance Regulatory Commission said in a statement on its website.

Under the new rules, Hong Kong's Growth Enterprise market will be open to Chinese insurance funds–in addition to the main board. Previously, stock investments in Hong Kong were limited to companies traded on the main board.

The regulator also said insurance funds can buy bonds of companies with at least a BBB- credit rating, compared with a BBB requirement previously.

Chinese insurers have stepped up their overseas investments in recent years, said the regulator. Outstanding insurance funds invested offshore stood at CNY23.96 billion as of the end of 2014, up 147 percent from the end of 2012, according to the insurance regulator.