The main contents of the Interim Measures for the Investment of Insurance Funds in Bonds

Article 1 According to the relevant provisions of Article 105 of the Insurance Law of the People's Republic of China, insurance companies may invest in corporate bonds with the approval of the People's Republic of China. In order to ensure the liquidity, safety and profitability of the insurance company's capital use, these measures are formulated.

Article 2 The enterprise bonds mentioned in these measures refer to the enterprise bonds issued with the approval of the main Qinqiao management department of the state and rated AA or above by the credit rating agencies recognized by the regulatory authorities. At present, the credit rating agencies recognized by the China Insurance Regulatory Commission are China Chengxin International Credit Rating and Dagong International Credit Rating. Other rating companies are subject to separate recognition.

Insurance companies should buy and sell enterprise bonds in accordance with these measures, operate on their own, bear their own risks, and assume their own profits and losses.

Enterprise bonds should be bought and sold by the head offices of all insurance companies or insurance asset management companies, and branches of insurance companies are not allowed to buy or sell enterprise bonds.

Article 5 The method of controlling the proportion of insurance companies' investment in enterprise bonds. The balance of various corporate bonds purchased by insurance companies shall not exceed 20% of the company's total assets at the end of the previous month at the end of the previous monthAn insurance company's holdings of a single type of corporate bond in the same period shall not exceed 15% of the issuance amount of a single type of corporate bond or 2% of the total assets of the insurance company at the end of the previous month, whichever is lower.

Insurance companies shall abide by the relevant laws, regulations, and business rules when buying and selling bonds on the Shanghai and Shenzhen stock exchanges and in the national interbank bond market.

Article 7 An insurance company may, upon approval of the investment-linked insurance, set up an investment account with a maximum investment ratio of 100 percent of the total assets of the account, and universal life insurance may set up an investment account with a maximum investment ratio of 80 percent of the total assets of the account. The establishment, merger, cancellation and change of investment accounts shall comply with the relevant regulations of the Association. For participating insurance or other insurance products with independent accounting, the proportion of enterprise bonds invested in the chain shall not exceed 20% of the assets of the product at the end of the previous month

Article 8 If an insurance company fails to buy and sell enterprise bonds in accordance with the provisions of these measures, the China Insurance Regulatory Commission may impose administrative penalties in accordance with the "Insurance Law of the People's Republic of China" and relevant laws and regulations.

Article 9 These measures shall apply to branches of foreign insurance companies.

Article 10 of the measures by the China Insurance Regulatory Commission is responsible for the interpretation, the same is true for revision.

Article 11: These Measures shall come into force on the date of promulgation. The Administrative Measures for the Purchase of ** Enterprise Bonds by Insurance Companies (Bao Jian Fa [2003] No. 9) shall be repealed at the same time.

False] Article 106 of the Insurance Law An insurance company must be prudent in the use of funds and follow the principle of safety.

The use of funds by insurance companies is limited to the following forms:

a) Bank deposits;

2) Buying and selling bonds, **, **investment**shares, etc.;

3) Investment in real estate;

4) Other forms of use of funds as stipulated in the Ministry of Finance.

The specific management measures for the use of funds of insurance companies shall be formulated by the insurance regulatory authority in accordance with the provisions of the preceding two paragraphs.

On July 16, 2012, the China Insurance Regulatory Commission issued the Interim Measures for the Investment of Insurance Funds in Bonds by Baoxing Shenhe Jian Fa No. 58 2012. The "Measures" are divided into general provisions, qualification conditions, ** bonds and quasi-** bonds, enterprise (corporate) bonds, investment specifications, Fanpai risk control, supervision and management, and supplementary provisions 8 chapters and 38 articles, which shall be implemented from the date of promulgation.