New asset-allocation rules for Chinese insurers are misleading, says Z-Ben

Local and foreign asset managers reacted eagerly to the late-July release of provisional guidelines giving Chinese insurers – whose investable assets total RMB4.2 trillion ($617 billion) – more flexibility over what they can invest in. But while a step in the right direction, the proposed changes are not as significant as they seem, says Shanghai-based consultancy Z-Ben Advisors. Moreover, the addendum to the provisional guidelines issued last week, entitled circular 66, doesn't make …