China Frees Possible $27 Billion From Insurers to Buy Gold (1)

A pilot program in China that allows insurers to buy gold for the first time could free up billions of dollars of investment in the metal, adding further impetus to a record-setting rally. Prices hit a fresh peak.

Ten insurance firms — including PICC Property & Casualty Co. and China Life Insurance Co., two of China’s biggest — will be able to invest as much as 1% of their assets in bullion, in a program that became effective last Friday. That would translate into a potential 200 billion yuan ($27.4 billion) of funds, Minsheng Securities Co. said in a note. ...