The insurance sector surged! Risk factors have been lowered again, expanding "patient capital," further opening up space for insurance funds to enter the market
The National Financial Regulatory Administration has once again lowered the risk factors related to insurance companies' business, enhancing the capital efficiency of insurance fund allocations to equity assets. This is the second optimization of solvency regulatory standards within three months, covering the CSI 300 Index, the CSI Dividend Low Volatility 100 Index, common stocks on the STAR Market, and export credit insurance business. The adjustment aims to strengthen patient capital and support technological innovation and foreign trade enterprises
On Friday, the National Financial Regulatory Administration issued a notice to further lower the risk factors for insurance companies' related businesses, enhancing the capital efficiency of insurance funds allocated to equity assets. This is the second optimization of solvency regulatory standards by the regulatory authorities within three months, following the first reduction in September this year, continuously opening up space for insurance funds to enter the market.
This adjustment covers three major areas: the risk factor for long-term holdings of CSI 300 index constituent stocks and the CNI Dividend Low Volatility 100 index constituent stocks has been reduced from 0.3 to 0.27; the risk factor for ordinary shares on the Sci-Tech Innovation Board has been reduced from 0.4 to 0.36; and the risk factors for premiums and reserves in export credit insurance business have also been lowered simultaneously.
When discussing the impact on serving the real economy, a responsible official from the National Financial Regulatory Administration mentioned in response to reporters that, first, the notice sets differentiated risk factors for the CSI 300 index constituent stocks, CNI Dividend Low Volatility 100 index constituent stocks, and Sci-Tech Innovation Board stocks based on holding periods, aiming to cultivate and strengthen patient capital and support technological innovation. Second, the notice adjusted the premium risk factors and reserve risk factors for insurance companies' export credit insurance business and the overseas investment insurance business of China Export & Credit Insurance Corporation, guiding insurance companies to increase support for foreign trade enterprises and effectively serve national strategies.
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