China Insurance Regulatory Commission, Circular on Regulating Stock Investments of Insurance Institutions

Issued: March 18 2009

Main Contents: If an insurance company has a solvency adequacy ratio of at least 150%, it may, in accordance with provisions, normally invest in stocks. If its solvency adequacy ratio falls between 100% and 150% for four quarters in succession, it shall revise its stock investment strategy, and if its solvency adequacy ratio falls below 100% for two quarters in succession, it may not increase its stock investments, it shall report its market risks and take effective counter and control measures in a timely manner (Article 1).