BEIJING, October 23 (InfoChina) -- China has approved Ping An Life Insurance Co. Ltd. as a pilot company to invest foreign exchange premiums in overseas markets.

An announcement from the State Administration of Foreign Exchange (SAFE) and the China Insurance Regulatory Commission (CIRC) said the insurer has been permitted to experiment with life insurance in foreign exchange, saying the premiums can be invested both at home and abroad.

       Insiders say the decision shows SAFE has approved overseas investment of forex premiums, which will encourage insurers to invest more money into the overseas markets.

       It is learned that China Life Insurance Co., Ltd. (NYSE: LFC) may follow suit to get the approval for making such investment.

       The move aims to ease the pressure of an ever growing foreign exchange reserve as well as broadening investment channels, said an insurance expert.

       Statistics show that the country had amassed a forex reserve of 987.9 billion U.S. dollars by the end of September, 28.46 percent up on the previous year, while experts believe the figure will exceed one trillion at the end of this month.

       Wu Dingfu, vice chairman of the CIRC, said this April that the State Council, China's cabinet, had approved "in general" insurance companies purchasing foreign exchange with the yuan for overseas investment.