Though now being permitted to invest in the real estate sector, Chinese insurance capital is unlikely to have a great influence on the domestic housing market due to the diversified investment strategy of insurance companies, said experts.

China's newly revised Law of Insurance took effect on October 1, allowing insurance companies to invest in properties.

Hao Suze, head of School of Insurance with Central University of Finance and Economics, said that insurance money would not have an obvious influence on real estate market, commercial businesses or real estate investment funds.

Hao said insurance will not pour much money into this sector and that the capital could be scattered among 120 insurers.

Cai Weimin, an industry expert, said that insurance companies will only invest in a small proportion of real estate projects and this would have no influence on the fundamentals of the industry.

The accessibility of insurance capital will provide stable source funds for the industry, which faces tighter monetary policies.

Insurance companies are expected to link up with some large-scaled house developers, helping restructure the market.