People's Bank of China and China Banking and Insurance Regulatory Commission, Circular on Matters Relevant to the Offering of Open-Ended Capital Bonds by Insurance Companies

中国人民银行、中国银行保险监督管理委员会关于保险公司发行无固定期限资本债券有关事项的通知

September 30, 2022 | BY

Susan Mok

Insurance companies are allowed to issue open-ended capital bonds

Issued: August 10, 2022

Effective: September 9, 2022

Applicability: For the purposes of this Circular, the term "open-ended capital bond" means a capital supplementation bond offered by an insurance company that has no fixed term, contains a write-down or conversion clause, can absorb losses in both going concern and bankruptcy liquidation situations and satisfies regulatory requirements in respect of solvency (Article 1).

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