Despite risks, HNWIs still interested in this asset class, mostly private-equity funds for onshore, and Reits for offshore, according to China Merchants Bank.
Investors says they are looking for key areas of focus, including the new leadership's composition, capital controls, property and state-owned enterprise reforms.
The draft guidelines form part of the new C-Ross solvency system, to which insurers in China must adapt over the next three years. They include reviewing asset-liability management.
Chinese HNW and insurance investors are temporarily holding back on offshore investments, but will likely ratchet up again in the future. This poses challenges for wealth and asset managers.
Chinese HNWIs are increasingly seeking diversification benefits through asset allocation but it it's early days yet and the country's wealth managers are still playing catchup.
The country's life insurers are investing more into alternatives and equity to raise returns. Doing so comes with sizeable risks that smaller firms may struggle with, say experts.