Abu Dhabi: China launched a pilot programme allowing certain insurance companies to invest in gold as part of their medium to long-term asset allocation strategies. This initiative aims to expand the avenues through which insurance funds can be used, optimising the structure of insurance asset allocation and enhancing the asset-liability management capabilities of insurance firms. According to Bahrain News Agency, the National Financial Regulatory Administration reported that ten insurance companies are participating in the pilot programme. This initiative permits gold investments through various means, including spot contracts for gold traded on the main board of the Shanghai Gold Exchange, deferred delivery contracts for gold, centralised pricing agreements, spot inquiry contracts, swap contracts for gold inquiries, and gold leasing operations. The pilot programme is expected to deepen the reform in insurance fund utilisation and promote high-quality development in the insurance industry, the administrati on stated.
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