BEIJING (Bloomberg) — China's insurance regulator plans to allow insurers to buy unsecured corporate notes for the first time to spur economic growth and development of the debt market, according to an official at the agency.

The China Insurance Regulatory Commission will require insurers to set up internal credit-rating systems before allowing them to invest in debt not backed by a third party, said the official, who declined to be identified before the agency finishes gathering opinions on the rules. Insurers are now only permitted to buy bonds of state companies with guarantees.

The regulator urged China Life Insurance Co. and Ping An Insurance (Group) Co. to buy more corporate bonds and equity stakes in November to complement government plans to spend $586 billion to spur growth in the world's third-biggest economy. China's mutual funds were barred from buying unsecured corporate debt by the securities watchdog in April on concern that the notes were too lightly traded.