National reinsurer gets cash injection
22 January 2007
China Reinsurance Group has received a US$4 billion injection from the country's foreign exchange reserves, the Wall Street Journal reported. The injection was made last year by Central Huijin Investment, the state investment agency responsible for recapitalizing China's financial sector, according to a statement on the insurance regulator's website. The move is likely to put the country's biggest domestic reinsurer on trackto bring in strategic investors and make an initial public offering this year. It is also a sign that Beijing is willing to use its US$1 trillion-plus forex reserves for purposes other than stabilizing the banking and securities sectors.