(China Alert) Insurance outbound investment (p)review 

-Chinese insurers’ investable assets grew 21% YoY to RMB13.1tr (USD1.9tr) by November 2016
– Insurers have not been deterred by obstacles to overseas investment

Update: Last year should have been a landmark year for Chinese insurers and their offshore investment aspirations. Regulatory encouragement and falling yields onshore pushed all firms, large and small, to look at global markets. However, expectations were brought back down to earth by the reality: a dearth of QDII quota. As the new year dawns, it is time to move on and look ahead to what we expect for 2017. While insurers will continue to find workarounds in a quota-scarce environment, Z-Ben Advisors expects them to be the prime beneficiaries of future outbound investment program liberalization, pending RMB/USD exchange rate movements. Any potential liberalization, among other factors, will necessitate global managers to redraw their strategy for approaching Chinese insurers in 2017.

Z-Ben Analysis

All the pieces were falling into place to …

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