Investment Scope of Insurance Asset Management Products The Capital Department of the China Insurance Regulatory Commission issued the "Notice on Matters Related to Adjusting the Investment Scope of Insurance Asset Management Products (Draft for Comments)" (hereinafter referred to as the "Draft for Comments") in late December 2015.

An industry insider interpreted the document as saying that the investment scope of insurance asset management products has increased trust and other assets, and at the same time clarified the application for innovative target products.

Regarding the investment scope of insurance asset management products, the current basis is the "Notice on Issues Concerning the Pilot Project of Asset Management Product Business by Insurance Asset Management Companies" issued by the China Insurance Regulatory Commission in February 2013 (hereinafter referred to as the "Notice").

The investment scope of asset management products is limited to bank deposits, stocks, bonds, securities investment funds, central bank bills, non-financial corporate debt financing instruments, credit asset-backed securities, infrastructure investment plans, real estate investment plans, project asset support plans and those approved by the China Insurance Regulatory Commission.

Other assets.

The newly issued "Draft for Comments" intends to adjust the scope of basic assets for investment in insurance asset management products to: the investment range of insurance funds that complies with regulatory requirements, as well as other investment types recognized by the China Insurance Regulatory Commission such as debt income rights.

The investment scope of insurance funds is clearly stipulated in the "Interim Measures for the Management of the Utilization of Insurance Funds".

In February 2014, the China Insurance Regulatory Commission issued the "Notice on Strengthening and Improving the Supervision of Insurance Fund Utilization Ratios" which divided the investable assets of insurance funds into five categories, including liquid assets, fixed income assets, equity assets, real estate assets and

Other financial assets.

Among them, other financial assets include collective trust plans, bank wealth management, financial derivatives, project asset support plans and other insurance asset management products.

A relevant person in charge of an insurance asset management company told a reporter from Securities Daily that the biggest change in the investment scope of the asset management product business in this "Draft for Comments" is "the addition of trusts", which is equivalent to a lot of changes compared with the current regulations.

Great degree of relaxation.

"In addition, the "Draft for Comments" also clarifies the application process for innovative products and provides guidelines." The person in charge said.

The "Draft for Comments" intends to divide insurance asset management products into two categories based on different underlying assets: those whose underlying assets are within the investable range of insurance funds are classified as ordinary products; those whose underlying asset range exceeds the investable range of insurance funds are innovative products

type product.

The "Draft for Comments" stipulates that after insurance asset management companies obtain product business qualifications and complete the issuance of ordinary products, they can apply for the issuance of innovative products.

When an insurance asset management company applies to issue innovative products, it must register its product innovation capabilities.

Apply for the issuance of innovative products and implement the model of risk assessment for the first product and subsequent reporting of similar products.

When an insurance asset management company issues asset management products, it shall conduct registration, issuance, transaction transfer and information disclosure through the asset trading platform designated by the China Insurance Regulatory Commission, and submit a post-event report to the China Insurance Regulatory Commission in accordance with the provisions of the Notice.

The business scope of insurance asset management products is expanded to include pension insurance companies. In addition, the "Draft for Comments" also intends to expand the scope of institutions that carry out asset management product business from the current insurance asset management companies to pension insurance companies. The latter will carry out product business according to relevant

Provisions are enforced.

According to the definition given in the previous "Notice" of the China Insurance Regulatory Commission, insurance asset management products are insurance asset management companies that serve as managers and sell standardized product shares to investors to raise funds. The custodian institution serves as the asset custodian and uses the products for the benefit of investors.

Financial instruments for investment management of assets.

Products are divided into directional products and collective products. The former has a subscription threshold of 30 million yuan, and the latter has an investment threshold of 1 million yuan. Investors are insurance institutions and other institutional entities.

"The threshold is 1 million yuan, and the competition is the investment research capabilities of various asset management companies." A fixed income investor from an insurance asset management company commented on this business.

In the eyes of people from pension insurance companies, it is not surprising that the initiator of this business extends to pension insurance companies. “Pension insurance companies are asset management institutions to a certain extent, and they themselves have fund entrustments including annuities and pension security.

Management and other businesses with an asset management nature, pension insurance companies are now also transforming into asset management institutions,” a pension insurance company executive told a reporter from Securities Daily.

However, the pension insurance company executive also said that being allowed to carry out asset management product business is in line with the development direction of pension insurance companies to transform into asset management institutions. However, the pressure to carry out this business is also high, and it is not easy to do it well. After all,

Competition in the asset management field is fierce.

Since the pilot, a reporter from Securities Daily has learned that the number of insurance asset management companies operating has continued to increase, and the types of insurance asset management products have continued to increase. The investment scope not only covers domestic traditional investment and alternative investment fields, but also covers overseas investment products.

For example, an insurance asset management company has issued a number of debt income asset management products that invest in the financing business of securities companies. At the same time, it has issued a "global new stock and liquidity opportunity asset management product" in an attempt to "innovate" globally.

No more than 40% of the assets in the product will be invested in initial public offerings of stock assets on major overseas stock exchanges.