CBIRC Zhang Zhongning: We will continue to deepen the market-oriented reform of insurance funds utilization
Zhang Zhongning, spokesman of China Banking and Insurance Regulatory Commission, said at a press conference held by the State Council on July 14 that CBIRC would continue to deepen market-oriented reform in the use of insurance funds, and support insurance funds to increase long-term financial support for advanced manufacturing and strategic emerging industries under the principles of compliance with laws, controllable risks and commercial sustainability. First, CBIRC will improve regulatory policies. It will revise policies on the investment of insurance funds in financial products, and include more financial products whose risk-return characteristics meet the needs of insurance funds into the investment scope. By moderately relaxing the requirements for insurance funds to invest in venture capital funds and equity investment funds, it could enrich the long-term sources of capital for industrial funds and science-innovation funds. Second, CBIRC will deepen the reform of “simplifying administrative power, innovating management, and reducing market interventions”, to optimize asset support plan issuance procedures and enhance product issuance efficiency. Third, CBIRC will encourage product innovation and support insurance asset management companies to create long-term products, and meet the diversified financing needs of enterprises through creditor’s rights financing, equity financing, equity combination and other forms.

Source: China Securities Journal
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