China allows insurers to buy into banks – Reuters

From Reuters:

China’s insurance regulator said on Friday that it would start letting insurers take stakes in the country’s banks, in a step towards allowing more interaction between the banking, insurance and securities sectors.

China has long maintained barriers between the three financial sectors, wary of the transmission of financial risks among them.

The China Insurance Regulatory Commission said in a statement on its Web site that the move would help create synergies between the banking and insurance industries.[Full Text]