China's National Financial Regulatory Administration issued a notice adjusting the regulatory ratio framework for insurers’ investments in equity-type assets, increasing allowable equity exposure and easing certain related constraints to broaden insurers’ capacity to support capital markets and the real economy. The notice simplifies the tiering standards and raises by 5 percentage points the upper limit on equity-type asset allocations for some solvency-adequacy tiers, expanding insurers’ room for equity investment. It also increases the permitted concentration ratio for investments in venture capital funds to encourage more insurance funding for equity investment in strategic emerging industries. For tax-deferred pension insurance, the ordinary account will no longer be calculated separately for investment-ratio compliance. The regulator indicated it will continue refining supervisory policies governing the use of insurance funds.
China Banking and Insurance Regulatory Commission 2025-04-08
China's National Financial Regulatory Administration lifts insurers’ equity allocation caps by 5 percentage points in some tiers and loosens venture fund and tax-deferred pension rules
China's National Financial Regulatory Administration has adjusted the regulatory ratio framework for insurers' investments in equity-type assets, increasing allowable equity exposure. Changes include a 5 percentage point increase in the upper limit on equity-type asset allocations for certain solvency-adequacy tiers and a higher concentration ratio for venture capital fund investments. The regulator plans to further refine supervisory policies for insurance fund usage.