BEIJING: Insurers in China may be allowed to invest up to 15 percent of their 1.89 trillion yuan of total assets in overseas stocks, fixed-income products and currency-market funds, according to draft rules by the regulator posted on Thursday.

The rules governing how insurers would be able to operate under the domestic institutional investor program, or QDII, were posted by the China Insurance Regulatory Commission on its Web site. The commission, based in Beijing, is seeking public comment.

The new rules give Chinese insurers additional investment options up to US$242 billion, and longer return periods on their assets to match liabilities that stretch to 30 years for life insurance and other policies.

Insurers would be allowed to invest in commercial bills, negotiable certificates of deposit, repurchase and reverse repurchase contracts, stocks, stock funds and currency-market funds, the regulator said. Insurers may also invest in bank deposits, bonds, convertible bonds, bonds backed by assets and trust products.

To qualify for the QDII program, the insurers' funds must be handled by asset management companies operating with rules and risk controls that meet the regulator's standards. They must also specify how they can match their assets and liabilities according to the regulator's draft rules.