Full Text Translation

Insurance companies are now allowed to invest in convertible corporate bonds.

The Provisions set out the temporary framework for insurance asset management companies on establishment, change, termination, business scope, operation rules and risk control.

The Opinions acknowledge the significance of vigorously development in the capital markets, outline reform ideologies, and provide directions for future liberalization.

The Circular provides eight qualifications that a listed parent company must meet, and adopts a mechanism to ensure the independent listing status and continuous profitability of the listed parent company after the spin-off.

Guidance is given to identify, appraise, manage and control risks encountered during the process of insurance funds utilization.

The Provisions stipulate detailed regulations in relation to company registered capital, including its amount, method of contribution, asset appraisal, form of payment, increase or decrease, and the corresponding procedures, rights and liabilities.

The Implementing Rules mainly focus on the establishment, termination and liquidation of foreign-invested insurance companies and their branch organizations, clarifying the PRC Administration of Foreign-invested Insurance Companies Regulations effective since February 2002.

(Issued by the State Administration of Foreign Exchange on May 17 2004 and effective 45 days after the date of issue.)

The Administration of Insurance Companies Provisions became effective on June 15 2004, and have replaced the provisions of the same name promulgated by the CIRC on January 13 2000 and amended on March 15 2002. They are applicable to domestic insurance companies, and are generally applicable to foreign-invested insurance companies.