Circular on Regulating Stock Investments of Insurance Institutions
关于规范保险机构股票投资业务的通知
An insurance company or insurance asset management company shall establish different grades of stock pools, such as a prohibited pool, reserve pool and core pool.
(Issued by the China Insurance Regulatory Commission on March 18 2009.)
Insurance companies and insurance asset management companies:
(中国保险监督管理委员会于二零零九年三月十八日发布。)
With a view to supporting the reform and development of the capital market and enhancing the self-determined allocation and investment management capabilities of insurance institutions, we hereby notify you on matters relevant to further regulating the investment of insurance proceeds in stocks as follows:
1. Enhancement of the management of the allocation of stock assets: an insurance company shall centrally allocate domestic and foreign stock assets and rationally determine the scale and ratio of its stock investments in line with the characteristics of its insurance proceeds and its solvency position. If it has a solvency adequacy ratio of at least 150%, it may, in accordance with provisions, normally invest in stocks. If its solvency adequacy ratio falls between 100% and 150% for four quarters in succession, it shall revise its stock investment strategy. If its solvency adequacy ratio falls below 100% for two quarters in succession, it may not increase its stock investments, and it shall report its market risks and take effective counter and control measures in a timely manner.
各保险公司、保险资产管理公司：
2. Strengthening management of stock pool system: an insurance company or insurance asset management company shall establish different grades of stock pools, such as a prohibited pool, reserve pool and core pool, strengthen the day-to-day maintenance and management of such pools, improve its research support capabilities, do follow-up analyses of market circumstances and closely watch changes in listed companies. If any of the circumstances specified in Article 14 of the Tentative Measures for the Administration of Stock Investments by Insurance Institutional Investors applies to a stock that it has invested in, it shall, as authorised, dispose of the same and remove it from the investable stock pool in a timely manner.
3. Establishment of a fair trading system: an insurance company or insurance asset management company shall set out rules for the fair trading of its stock investments, and ensure that the various accounts or investment portfolios have fair opportunities in terms of research information, investment recommendations and transaction execution, etc. An insurance institution shall assign independent stock investment managers based on the nature of the accounts or portfolios and stringently guard against the siphoning off of benefits through boosting between accounts, counter-trend trading, etc. It shall strengthen professional ethics education, establish a system for the reporting of the stock accounts of its stock investment-related personnel and their immediate family members so as to prevent operational and moral risks.
为支持资本市场改革发展，提高保险机构自主配置和投资管理能力，现就进一步规范保险资金投资股票有关事项通知如下：
4. Operating in accordance with provisions to control overall risk: an insurance company shall calculate its total asset baseline figure based on the new accounting guidelines and relevant provisions, strictly control short-term financing, set out rules for its investment operations and guard against overuse of leveraged financing to invest in stocks. An insurance company or an insurance asset management company shall provide data to its custodian bank such as a detailed list of its stock-pool stocks and large blue-chip stocks, a list of affiliated-person stocks, its total assets required for the calculation of ratios and the size of the accounts for its various insurance products, so as to support its custodian bank in the performance of its independent third party monitoring obligations.
5. Strengthening of dynamic monitoring of market risks: an insurance company or insurance asset management company shall strengthen its infrastructure, use quantitative analysis methods such as value at risk (VaR) to conduct stress tests of stock market risks on a quarterly basis, analyse its degree of risk exposure and assess latent risk factors and overall risk-bearing capacity. In case of abnormal circumstances, such as large fluctuations in the stock market, an insurance company must increase the frequency and scope of testing, take attenuation measures and submit a Report on Risk Control of Stock Investments to the regulator in a timely manner. An insurance institution shall, based on the principle of diversification, set concentration indicators for industries and individual stocks and set rules for participation in stock subscriptions, subsequent offerings, rights offerings, etc. so as to guard against the occurrence of concentration risks and possible market risks engendered by lock-up periods.
一、改进股票资产配置管理。保险公司应当根据保险资金特性和偿付能力状况，统一配置境内境外股票资产，合理确定股票投资规模和比例。偿付能力充足率达到150%以上的，可以按照规定，正常开展股票投资，偿付能力充足率连续四个季度处于100%到150%之间的，应当调整股票投资策略，偿付能力充足率连续两个季度低于100%的，不得增加股票投资，并及时报告市场风险，采取有效应对和控制措施。
6. Implementation of position risk responsibilities: an insurance company or insurance asset management company shall further implement a position responsibility system, duly carry out relevant analysis and checking work, strengthen the internal auditing of the implementation of its stock investment system, establish a routine monitoring mechanism for irregular transactions and strengthen the independence and fairness of transactions and management control in the distribution process. The relevant senior management personnel and risk-control personnel of an insurance institution shall duly perform their management duties, violations of regulations shall be truthfully recorded and reported, the liability pursuit system shall be stringently implemented and the duties of the investment management personnel at each stage shall be ascertained. If any such person violates laws, regulations or operating provisions, his/her liability for violation of the regulation and for the loss incurred as a result thereof shall be pursued.
Based on market development requirements, we have decided to implement a record-filing system for stock investments by insurance companies. An insurance company shall elect to directly invest in stocks or to appoint a third party to do so on its behalf based on the Criteria in Respect of Stock Investment Capabilities of Insurance Companies and market principles, and report the same to the China Insurance Regulatory Commission for the record (for details, see the attachment).
二、强化股票池制度管理。保险公司和保险资产管理公司应当建立禁选池、备选池和核心池等不同层级的股票池，加强股票池的日常维护和管理，提高研究支持能力，跟踪分析市场状况，密切关注上市公司变化。已投资股票出现《保险机构投资者股票投资管理暂行办法》第十四条规定情形的，应当按照授权及时处置，从可以投资票池中剔除。
Attachment:
Form for the Record Filing of Stock Investments by an Insurance Company (omitted)
clp reference:3910/09.03.18prc reference:保监发 〔2009〕 45号promulgated:2009-03-18
三、建立公平交易制度。保险公司和保险资产管理公司应当规范股票投资公平交易行为，确保各类账户或者投资组合享有研究信息、投资建议和交易执行等公平机会。保险机构应当根据账户或者组合性质，配备独立的股票投资经理，严防账户之间的高位托盘、反向操作等利益输送。应当加强职业道德教育，建立股票投资相关人员及直系亲属的股票账户申报制度，防范操作和道德风险。
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