China Insurance Regulatory Commission, Provisions on the Participation of Insurance Proceeds in Stock Index Futures Trading

中国保险监督管理委员会保险资金参与股指期货交易规定

January 10, 2013 | BY

CLP Temp &

Investment of insurance proceeds allowed in stock index futures trading.

Clp Reference: 3910/12.10.12 Promulgated: 2012-10-12 Effective: 2012-10-12

Issued: October 12 2012
Effective: as of date of issuance
Interpreting authority: China Insurance Regulatory Commission


Applicability: For the purposes of these Provisions, the term “stock index futures” means financial futures contracts approved by the PRC's securities regulator that are listed on a PRC financial futures exchange and the subject matter of which is stock price indices (Article 2).


Main contents: When an insurance group (holding) company, insurance company or insurance asset management company lawfully established in the PRC (hereinafter collectively referred to as “Insurance Institutions”) participates in stock index futures trading, it shall, in accordance with the Tentative Measures for the Participation in Financial Derivatives Trading by Insurance Proceeds, do so for hedging purposes (Article 3).


When an Insurance Institution wishes to participate in stock index futures trading, it shall formulate a risk hedging plan that specifies the hedging instruments, targets, size, term and effectiveness, and carry out an internal approval procedure (Article 6).


When an Insurance Institution participates in stock index futures trading, the value of the short stock index futures contracts held by any asset portfolio at the end of any trading day may not exceed the book value of the stocks and stock type fund assets being hedged (Article 7).


Related legislation: Tentative Measures for the Participation in Financial Derivatives Trading by Insurance Proceeds, Oct 12 2012, CLP 2013 No.1 p.55

clp reference:3910/12.10.12(5) issued:2012-10-12 effective:2012-10-12

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]