The fund operation of insurance companies is limited to bank deposits; Buying and selling bonds, stocks, shares of securities investment funds and other securities.

According to Article 106 of the Insurance Law of People's Republic of China (PRC), insurance companies must use funds steadily and follow the principle of safety. The use of funds by insurance companies is limited to the following forms:

(1) Bank deposits;

(2) buying and selling bonds, stocks, shares of securities investment funds and other securities.

(3) investing in real estate;

(four) other forms of use of funds as prescribed by the State Council.

Specific measures for the administration of the use of funds by insurance companies shall be formulated by the the State Council Insurance Regulatory Authority in accordance with the provisions of the preceding two paragraphs.

Relevant laws:

Article 139 of the Insurance Law of People's Republic of China (PRC) If an insurance company fails to withdraw or carry forward various liability reserves in accordance with the provisions of this Law, or fails to reinsurance in accordance with the provisions of this Law, or seriously violates the provisions of this Law on the use of funds, the insurance supervision and administration institution shall order it to make corrections within a time limit, or may order it to adjust the responsible person and relevant management personnel.

Article 142 In the process of reorganization, the reorganized insurance company continues to operate its original business. However, the the State Council Insurance Regulatory Authority may order the reorganized company to stop some of its original businesses, stop accepting new businesses and adjust the use of funds.