The gray area, as the name implies, means that people may have a clear understanding of right and wrong, either right or wrong, or white or black. In fact, there is a big gray area between these two extremes, which is ambiguous and difficult to define. But it's a buffer and transition zone between black and white.

the "grey zone" in practice

1. How to identify the investment mezzanine after the prohibition of inferiority

The new regulations of Credit Insurance clearly include the beneficial right of the inferior investment in the regulatory red line, but how to identify the effectiveness of the investment mezzanine (intermediate level) in the future is still controversial in practice.

One view is that the intermediate beneficial right is inferior to the priority beneficial right in order, so it should be circled as the "inferior beneficial right".

Another point of view is that "intermediate level" and "inferior level" are two independent concepts, which should be applied mutatis mutandis to the New Regulations on Asset Management, which stipulates that "graded private placement products should be graded according to the risk degree of the invested assets (priority share/inferior level share, intermediate level share is included in priority share)" and the Interim Provisions on the Operation and Management of Private Equity Management Business of Securities and Futures Operating Institutions (Announcement of China Securities Regulatory Commission).

The new credit insurance regulations do not explicitly prohibit the intermediate beneficial right of insurance investment, and the regulatory authorities have not stipulated the "mezzanine" or "intermediate" share.

Therefore, the determination of mezzanine has not been solved in the new regulations of credit insurance. In other words, can we understand that the mezzanine structure of insurance investment still has room for survival on the premise that the inferior proportion of specific trust products has obviously met the requirements of capital ratio?

2. Setting a threshold and how to judge the "major penalty"

This new credit insurance regulation does not clearly define what is meant by "major administrative penalty of regulatory agencies". We compared the relevant provisions of the Administrative Punishment Measures of China Banking Regulatory Commission issued by the former CBRC in 27 and 215.