The China Insurance Regulatory Commission (CIRC) announced a ban on insurers acquiring listed firms in concert with non-insurance parties, in a move to prevent risky stock investments. When insurance companies make major stock investment with non-insurer parties, they must use their own funds to make a purchase. A purchase of at least 20% of stock in a listed company by an insurer is considered a major investment. Insurance firms are not allowed to acquire listed companies or purchase a major stake before gaining regulatory approval. The CIRC ordered that an insurer’s investment in one single stock should not exceed 5% of its total assets at the end of the previous quarter. Meanwhile, an insurer’s total equity investment should be less than 30% of its total assets at the end of the previous quarter. The new rules came as some insurers used leveraged funds to buy shares of listed companies late last year.