BEIJING, April 13 (Xinhua)-- China’s State Council has given the green light to the country’s insurers to channel large amounts of yuan-denomination equity funds into overseas markets, top insurance regulator Wu Dingfu said.
　　
　　The move would be launched on a pilot basis, targeting a number of selected insurers, before June to broaden the use of insurance funds, Wu, chairman of the China Insurance Regulatory Commission (CIRC), told a forum in Beijing on Wednesday.
　　
　　Chinese insurance companies are already allowed to invest their foreign exchange holdings in firms listed in New York, London, Hong Kong and other stock exchanges.
　　
　　The overseas use of the insurers’ Renminbi assets was sanctioned as the government considers a new qualified domestic institutional investor (QDII) plan that will allow large yuan assets to be invested in international markets.
　　
　　China is freeing up but still maintaining foreign exchange controls, and insurance companies will be permitted to convert their yuan holdings into foreign currencies for investment.
　　
　　The prevailing view among industrial analysts is that stock and other domestic financial markets are not mature enough for hefty institutional investments.
　　
　　“Insurance assets are not well utilized partly because of the weak and small domestic financial market and lack of investment products and tools,” Guo Jinglong, director of the Insurance Division of the Chinese Academy of Social Sciences, told Xinhua.
　　
　　Wei Benhua, deputy director of the State Administration of Foreign Exchange, revealed earlier that the long-awaited QDII scheme would be unveiled by the end of this year.
　　
　　It includes China’s largest non-life insurance company, PICC Property and Casualty Company, and the largest commercial insurance company, China Life Insurance Company, he said.
　　
　　Government statistics show Chinese insurers had about 1.6 trillion yuan (200 billion U.S. dollars) in combined assets by the end of February. The government has been exploring ways for its use in an efficient and safe manner.