Projects attract RMB900b from insurance funds

Insurance funds have invested about RMB900 billion on infrastructure projects related to the development of the Greater Bay Area. According to data from the Guangdong Banking and Insurance Bureau, the steady investment flow from these funds, which typically have ROI horizons of 30 years, acts as a “stabilizer” for the region’s construction.

China Taiping, for example, has supported the construction of Baotou-Maoming Expressway, Chaozhou-Huizhou Expressway, Yunfu-Yangjiang Expressway, Lecang-Guangzhou Expressway and Nansha Bridge through debt schemes, raising a total of RMB5 billion. In addition, it assisted the government-backed Shenzhen Investment Holdings to acquire Hopewell Highway Infrastructure Ltd. for HK$1.4 billion.

Besides China Taiping, as of the end of Q1, the People’s Insurance Company Group (PICC) has invested RMB45 billion, Ping An Life Insurance close to RMB40 billion, and Ping An Property & Casualty Insurance RMB30 billion in the region. In 2017, Ping An Group and the provincial government jointly launched the “Guangdong Ping An Development Fund” with a target of RMB150 billion to invest in large-scale infrastructure projects in the Greater Bay Area including high-speed railways, inter-city railways and airports.

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