CIRC to restrict low-rated insurer investment

China's insurance regulator said Friday it will restrict investment and sales of certain products by insurers with poor ratings from their asset and liability evaluations.

The move is meant to contain the risk of insurers' asset-liability duration mismatches and to guide the industry to focus on offering protection and serving the economy, the China Insurance Regulatory Commission said in a statement.

The regulator will ban insurers with low regulatory ratings from carrying out major equity investment as well as investment in real estate and financial derivative products, the CIRC said.

The regulator has issued draft rules for the regulation of insurers' asset and liability and it is soliciting industry opinions. The new regulation will be officially issued and implemented next year.

"A sound management of asset and liability is the basis for insurers' sustainable development. It will also help ensure a stable development of the industry in an increasingly complex environment and will help prevent systemic risks," the regulator said.