PICC rolls out $158m industrial fund

The fund has secured commitments from PICC Capital Investment Management, China North Industries Group Corporation and Changjiang Securities, according to 21st Century Business Herald reported. It has initial capital of RMB200 million.

The industrial find is still subject to the approval by the China Insurance Regulatory Commission (CIRC), one person familiar with the matter said. As PICC will participate in the fund as both GP and LP, the company is must satisfy the regulator regarding its management and risk control abilities. The CIRC currently takes a cautious approach to such approvals, especially on matters concerning fund size, liquidity and information transparency.

PICC is not the first insurer enters into the private equity sphere. In August last year, China Life, the biggest insurer in China, was granted a license by domestic regulators to raise private equity and real estate funds. Ping An Insurance has also been permitted to allocate part of its capital to private equity investments.

Back in 2010, the CIRC opened the door for insurers to expand their investment portfolio into private equity and real estate. Under the new regulation, registered insurance companies are allowed to inject up to 5% of their total assets, either directly or indirectly, into domestic private equity. It is estimated that the new rule could bring around RMB226 billion into the local private equity sphere.

PICC is also reported to have reached an agreement with the Chongqing government to support the development of social housing through debt financing worth RMB1.5 billion.

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• Topics
• Fundraising
• Greater China
• Financials
• China
• CIRC
• PICC
• China Life
• Real estate
• insurance