General Office of the China Banking and Insurance Regulatory Commission, Circular on Matters Relevant to the Involvement of Insurance Capital in Securities Lending Business

Issued: November 11, 2021

Applicability: The phrase "involvement of insurance capital in securities lending business" means the business wherein an insurance group (holding) company, insurance company or insurance asset management company (hereinafter collectively referred to as an "Insurance Institution") lends securities arising from the application of insurance capital to a securities borrower at a certain fee rate and the borrower punctually returns the borrowed securities and corresponding equity compensation and pays the borrowing fee. Securities lending business includes regulator recognized business such as domestic refinance securities lending, domestic bond lending and offshore securities lending (Article 1).

This Circular shall apply to the involvement in securities lending business by single asset management plans, etc. invested in by insurance group (holding) companies or insurance companies and the manager of which is a securities company, a securities asset management company or a securities investment fund management company (Article 16).