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China tightens rules on insurers to fight local govt. debt risk

Published 01/18/2018, 09:01 AM
© Reuters.  China tightens rules on insurers to fight local govt. debt risk
  • In a bid to reduce financial risks, China Insurance Regulatory Commission and the Ministry of Finance have banned insurers from offering illegal financing services to local governments or local government financing vehicles.
  • China insurance companies are required to provide specific legal opinions on the compliance of their investments and conduct strict risk assessment of LGFV projects based on their commercial viability, rather than government creditworthiness.
  • Source: Investing.com
  • ETFs: MCHI, GXC, CAF
  • Now read: Is Resurgent Dr. Copper About To Relapse?


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