Where will insurance companies invest in China?

China''s financial reform half-measures may impede foreign insurers'' ability to manage funds.

China's insurance market is a pot of gold with a depth of Rmb200 billion $25 billion. The question is what will insurers do with that huge premium if and when they get to the end of the rainbow.

Repatriating the funds is out of the question. The only option insurers have to invest the premiums the receive in China are bank deposits, government bonds and securities. The interest rates on deposits with Chinese banks at...

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