China Insurance Regulatory Commission, Circular on Strengthening the Regulation of the Use of External Credit Ratings by Bond Investments of Insurance Proceeds

Issued: July 31 2013

Applicability: The Circular shall apply, mutatis mutandis, to the use of external credit ratings by investments of insurance proceeds in other credit types of financial products (Article 8).

Main contents: The China Insurance Regulatory Commission (CIRC) sets forth regulatory requirements for credit rating agencies giving ratings to bond investments of insurance proceeds. A credit rating agency should have its qualifications approved by the CIRC and have sound systems for internal controls and rating operations, and should disclose its rating methods and procedures. It is also subject to regulation by industry associations and regular assessments by the CIRC or its appointed intermediary institution.