The new regulations make it clear that insurance funds can invest in venture capital, private equity and asset securitization products. In the words of the China Insurance Regulatory Commission, "the regulatory practical experience and relevant normative documents in recent years will be upgraded to departmental regulations to better enhance the legal effect."
Insurance funds can be invested in private equity funds such as venture capital funds. The term "venture capital fund" as mentioned in the preceding paragraph refers to an equity investment fund established according to law and managed by a qualified fund management institution, which mainly invests in the common shares of start-up enterprises or the rights and interests such as preferred shares and convertible bonds that can be converted into common shares according to law.
Insurance funds can be invested in asset securitization products. The asset securitization products mentioned in the preceding paragraph refer to financial products issued by financial institutions on the basis of cash flow generated by specific basic assets and through structuring as repayment support and credit enhancement.