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Investing in VC Funds

Investing in VC FundsInvesting in VC Funds

The China Insurance Regulatory Commission (CIRC) has allowed insurance companies in the country to invest in venture capital (VC) funds as part of the government’s effort to support small- and medium-sized enterprises (SMEs), Channel NewsAsia reported. The venture capital fund, to which the insurers can invest, however, must meet regulatory requirements. Insurers have already been allowed to invest in the country’s SMEs through the stock market and asset-backed projects. Regulators have also permitted insurers to invest in firms that are listed on the ChiNExt board of the Shenzhen stock exchange. Total investment for the VC scheme must be limited to only 2% of an insurance firm’s overall assets in the previous quarter.

 

Financialtribune.com