China Insurance Regulatory Commission, Tentative Measures for the Administration of the Application of Insurance Capital

Promulgated: July 30 2010
Effective: August 31 2010

Main contents: The Measures requires an insurance group (holding) company or insurance company to strengthen management of interbank lending, bond buyback, margin trading and short selling, strictly control margin scale and the use of leverage and prohibit speculation and the use of funds from short-term interbank loans to invest in high risk and low liquidity assets. The participation of insurance capital in derivatives transactions shall be limited to the hedging of risks and may not be used for speculation or amplification of trading (Article 47).