China explained rules of investment in long-term rental housing for insurance funds

Beijing. June 6. Silkroadnews - China’s insurance regulator has standardized investments by insurance funds in long-term housing rental projects, SINA.com reports.
Insurance funds can invest in long-term rental projects based in large and medium-sized cities and areas that see net population inflows, such as Beijing, Shanghai, and Xiongan New Area in Hebei Province, the China Banking and Insurance Regulatory Commission said.
The statement says, the new rules, which have already entered into force, expand investment channels for insurance funds and help in the real estate management.
Insurance funds can invest in such projects in both equity and borrowed funds. For investment of borrowed funds, the monetary turnover of the invested objects must cover the principal debt and interest related.
For equity investments, insurance funds should not use the equity of the targeted projects as collateral to a third party.
The statement says, the registration of investments in insurance assets into long-term housing rental projects will be carried out according to the fast-tracked procedure.