CITIC-Prudential Closes Investment-linked Insurance Account

CITIC-Prudential Life Insurance Company Ltd., a Sino-foreign life insurer based in the southern boomtown Guangzhou, has been approved to close the first investment-linked insurance account specially for investing in new stocks, according to China Insurance Regulatory Commission.

As the investment-linked insurance sets up the stock accounts and stock-oriented accounts, such wealth management products actually has the closest relation with the stock market. By the end of last year, a total of eight investment-linked insurance accounts of up to four insurance companies received the regulatory approval.

This time, the fluctuating stock market of China is understood to be the reason why the joint venture insurer applied for closing the special investment-linked insurance account. Many new stocks have fallen below the initial public offering prices lately.

Shanghai Composite Index, which tracks Yuan-denominated A-shares and foreign-currency B-shares, is one of the world's worst stock indices this year, having plummeted by about 22% since the beginning of the year.