Senior government officials Tuesday vowed to support Chinese insurance companies in their attempts to tap international capital markets and explore ways to invest in overseas markets to boost returns.

At the China Insurance Conference - On the Way to International Capital Markets, the officials also stressed the urgent need for insurance firms to enhance their roles as institutional investors to allow the swift growth of domestic capital markets.

Wu Dingfu, chairman of the China Insurance Regulatory Commission, said the recent expansion by the local insurance industry into international capital markets had promoted the development of China's market system, strengthened local insurers, and helped improve their management and product and service innovation.

"We will support more insurance companies as they push to list on international capital markets," he told the forum.

PICC Property and Casualty Co Ltd and China Life Insurance Co, the nation's largest property and life insurance firm, respectively launched global initial public offerings (IPOs) late last year with great success. Ping An Insurance (Group) Co of China, the nation's second-largest life insurer, followed suit earlier this week with its IPO in Hong Kong. It is expected to start trading tomorrow.

Wu also pledged to continue implementing the outward looking strategy for the local insurance industry, which other commission officials say includes encouraging Chinese insurers to seek business overseas and raise funds in international capital markets, in addition to allowing them to invest in overseas capital markets.

Prior to the conference, senior government officials said the State Council had approved in principle a plan to allow insurers to invest in overseas capital markets, which would boost their repayment capacity. But Meng Zhaoyi, deputy director of the commission's International Department, told reporters: "There is no timetable yet."

(China Daily June 23, 2004)