The Research Of China Insurance Capital Invest In Real Estate Market

In order to solve the problem that the way to use the insurance funds is narrow, andthe problem that it is difficulty to preserve and increase the value of the insurance funds.On October1,2009,when the new"Insurance Law"began to implementation,the new"Insurance Law" allow the insurance funds to invest in the real estate market.On July31,2010, the China Insurance Regulatory Commission published the" The use ofinsurance funds management Interim Measures"，on September5,officially publishedthe" Insurance and real estate investment funds Interim Measures", strictly limit theinsurance company to provide unsecured creditor’s rights financing for the real estateprojects, prohibiting providing collateral for the real estate investment or directlyengaged in the development and construction of real estate,but it can be indirectly invest.The amount of the Insurance funds is huge, the purpurse of the investment is inpursuit of long-term investment, stability and profitability investment.The investmentchannels of the insurance funds, in recent years, is mainly used for investing bankdeposits and buying bonds, leading to the result that the income of the insurance fundsinvestment is low, easily affected by inflation, so that the insurance company is difficultto realize the target that keep the asset liability. Especially in recent years,the premiumincome is growing, broading the investment channels of the insurance capital, realizingthe reasonable configuration of the insurance funds is very important.The Real Estateinvestment cycle long, the investment income is security and stability, justly fitting withthe requirements of the insurance funds investment, allowing the insurance funds toinvest in the real estate market is imperative.The real estate industry is a capital-intensive industry, the capital demand ishuge.The real estate financing channels is narrow, mainly rely on self-financing and bankloans, but real estate developers rely on funds that raised by themselves’ capacity islimited, excessive rely on bank loans may produce financial risk. Allow insurers to investin real estate market can not only expand the real estate market financing channel,reducing financing risk, but also that the huge amounts of insurance funds can make upfor the market of real estate financing gap, promoting the real estate market develophealthy. The new" insurance law" allowing insurers to invest in real estate market, it is amajor change in the insurance industry and the real estate industry, it will effect thecurrent insurance market and the real estate market, this article researches the effect fromfour aspects, first of all from the development history and current situation of thedevelopment to study the Chinese insurance capital investment in real estate market;followed by the analysis of reasons, necessity and feasibility and influence; then makingthe Europe and the United States and Japan as an example to introduce the developmentof the country insurance capital invest in real estate market experience, put forward thatChina can draw lessons from the action; at last put forward that Chinese insurance capitalcan invest in real estate market countermeasures, from the four investment channels, thereal estate investment trust fund (REITs) strategy, investment in affordable housingendowment estate measures as well as the pension and commercial real estate investmentmeasures.