Abstract
Transportation infrastructure projects are often large in scale, and they require lots of long-term and concentrated funds, which is different from investments like stocks. With long-term saving function, life insurance funds own lots of stable long-term funds, whose nature matches the characteristics of infrastructure project gains, and can invest in large-scale transportation infrastructure and serve as a source of funds for long-term and stable investment in transportation infrastructure. It is necessary to fully understand the significance of life insurance fund investment in transportation infrastructure, and explore and study the similarities between life insurance fund and transportation infrastructure fund. This paper analyzes the significance of life insurance funds investing in transportation infrastructure construction, and argues that the role of life insurance funds investing in transportation infrastructure should be valued from the perspectives of macro environment, preservation and appreciation, regulatory system and cross-industry competition. By studying the characteristics of life insurance funds and the practice of life insurance funds investing in transportation infrastructure, the conclusion is that life insurance funds should invest more in transportation infrastructure construction. The main ways are to increase the asset allocation of transportation infrastructure, select the investment mode scientifically and establish the risk control system pertinently.
Highlights
In recent years, China continued to invest more in transportation infrastructure construction
Transportation infrastructure projects are often large in scale, and they require lots of long-term and concentrated funds, which is different from investments like stocks
With long-term saving function, life insurance funds have lots of stable and long-term funds, whose nature matches the characteristics of infrastructure project gains, and can invest in large-scale transportation infrastructure and become a source of funds for long-term and stable investment in transportation infrastructure
Summary
Email address: To cite this article: Zhai Yigang. A Study on Life Insurance Fund Investment in Transportation Infrastructure. Received: September 6, 2019; Accepted: October 14, 2019; Published: October 23, 2019
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