The Study On Insurance Funds Of Mineral Resource Investment Overseas

Mineral resources have become the main bottlenecks of China's sustainable economic and social development. In order to enhance the support capabilities, implement the "going out" strategy actively and participate in overseas mineral resources development are inevitable choice. Compared with large foreign multinational companies, overseas mineral exploration and exploitation of Chinese mining companies is still at the initial stage. Risk from investment can not be evaded.Insurance market could provide sustained and steady growth funds in the medium and long-term. The characteristics of insurance funds match the financing that mineral development projects need. As a commercial operation of the investment, insurance funds effectively circumvent the political risk of overseas mineral resources development. High-yield of mining investment creates a win-win situation for insurance investments. Through the insurance investments, accumulation of huge amounts of money invest in industry-based national strategies provide the long-term and stable financial support for the development of mineral resources overseas and combination of financial capital and industrial capital.After brief review of the world's mineral resource development, it makes out the situation on a global allocation of mineral resources. According to the theory of overseas mineral resources exploitation, combined with the consumption of mineral resources in China and major mineral resources available in the world, it comes to a conclusion that difficulties of mineral exploitation lies in two aspects: the performance of the major financing channels and risk control. Based on modern portfolio theory of insurance funds model, the asset allocation theory under the constraints is of the balance. In view of the current status of the development characteristics of insurance investment and capital market, establishment of the Overseas Investment Fund for mineral exploitation featured by insurance support will play a positive role in the integration of industries and financial capital.