Insurance companies' liabilities are mostly long-term, so finding good long-term assets to match them is pretty important, and real estate projects are among the best choices, Li explained.

"My confidence in China's real estate sector is based on the country's growing economy and limited land supply, especially in those hot areas," Li said.

Chen Fan, managing director of the investment arm of Standard Chartered, shares this view.

"China's property prices will definitely continue growing," Chen said at the Annual Forum of Caijing Magazine on Monday. "China's urbanization and the galloping forward of the gross domestic product (GDP) will shore up the property price."

Chen cited the huge amount of rural residents moving to the city as one reason for high demand in cities.

(China Daily 12/13/2006 page10)

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