Money

Insurers allowed to trade interest rate swaps

(Agencies)
Updated: 2010-07-21 09:36

Chinese regulators will allow the nation's insurers to conduct interest rate swaps, the Shanghai Securities News reported today, citing a notice issued by the China Insurance Regulatory Commission.

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Regulators had held trials allowing six insurers to conduct interest rate swaps, the newspaper reported. China will now allow all insurers to do so to hedge against risk and not for speculation, the newspaper reported, without giving a timeframe.

Insurers will be allowed to conduct interest rate swaps equal to as much as 10 percent of their assets at the end of the previous quarter, according to the report.