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In Depth: How ‘Paper Wealth’ Masks Risks for Chinese Insurers

By Wu Yujian and Jonathan Breen
2025年12月17日 16:00
Some insurers have bought large stakes in banks to exploit a rule that allows them to book instant accounting gains, but at the potential cost of real losses down the line

When state-owned Dajia Insurance Group Co. Ltd. spent billions of yuan earlier this year buying into Industrial Bank Co. Ltd. (601166.SH), the deal seemed unremarkable at first glance — a typical move by an insurer seeking a stable investment paying steady dividends.

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