Beijing, Feb. 8 (BNA): China launched a pilot programme allowing certain insurance companies to invest in gold as part of their medium to long-term asset allocation strategies.

This aims to broaden the channels through which insurance funds can be utilised, optimise the structure of insurance asset allocation, and enhance the asset-liability management capabilities of insurance firms, according to the National Financial Regulatory Administration, Xinhua News Agency reported.

Ten insurance companies are participating in the pilot programme, which permits gold investments through various means. These include spot contracts for gold traded on the main board of the Shanghai Gold Exchange, deferred delivery contracts for gold, centralised pricing agreements, spot inquiry contracts, swap contracts for gold inquiries, and gold leasing operations.

The pilot programme is expected to deepen the reform in insurance fund utilisation and promote high-quality development in the insurance industry, according to the administration. 

ZH