Qualified small- and medium-sized insurance companies in China would be allowed to invest directly in the country's stock market, in a move to cope with the economic slowdown, according to a government official.

Sun Jianyong, director of the Insurance Fund Investment Supervision Department of the China Insurance Regulatory Commission (CIRC), said at a conference held in Shanghai on Saturday that CIRC would increase investment subjects which would add qualified small- and medium- sized insurance companies.

He did not detail the criteria of qualification. Previously, these insurers invested in the stock market through third-party management companies.

He said CIRC had hammered out a new policy package to make proper adjustments and seek new growth points to help buoy the economic development during the financial crisis.

The new package includes enriching the categories of bond investments, issuing some debenture bonds and promoting assets securitization.

The new policy will also encourage insurance companies to add investment in infrastructure constructions and expand investment scale to stimulate domestic demand and revive the country's economy, he said.

Pilot programs for insurance company equity investments would also begin. No other information was available.

(Xinhua News Agency February 22, 2009)