Understanding direct investment of insurance capital in equity

In recent years, the China Insurance Regulatory Commission (CIRC) issued regulations addressing the investment of insurance capital in equity, the major ones including the Interim Measures for the Investment of Insurance Capital in Equity and the Notice on Issues Relevant to the Investment of Insurance Capital in Equity and Immovable Assets. They have had a salutary effect in promoting the security and effectiveness of the application of insurance capital. However, with the development of practice, problems of how to understand and apply the relevant CIRC regulations have also arisen.

Q: Do the interim measures and notice apply to the investment of insurance capital in equity by insurance asset management companies?

A: From article 3 of the interim measures, direct equity investments and indirect equity investments are directed at insurance companies – including insurance group (holding) companies – seemingly implying that the interim measures and the notice do not apply to the application of insurance capital by entities (such as insurance asset management companies) other than insurance companies.