China Life (LFC) to trade Chinese domestic stocks

A unit of China Life Insurance (ticker: LFC) has secured trading seats on the Shanghai and Shenzhen stock exchanges. New regulations now allow insurers to invest
as much as 5% of their total assets in stocks, excluding assets from investment-connected and universal
life-insurance products. But.....

as the article (subscription required) in the Wall Street Journal so candidly mentions:

"....even as the government opens up this channel
of investment for insurance funds, regulators also expect to keep
supervision tight as the nation's stock markets remain underdeveloped
and prone to scandal."

Thought: This is clearly a bet that the Chinese domestic markets will be cleaned up soon. Not only have returns been weak, but scandal, as the WSJ points out, has not been an uncommon occurrence.