Insurance companies are allowed to issue capital bonds with no fixed term, cancel the cap on foreign ownership of insurance asset management companies, and increase the crackdown on illegal bidding practices. In September a raft of new laws and regulations will come into force that will make a difference.
The Regulations on the Administration of Insurance Asset Management Companies issued by the China Banking and Insurance Regulatory Commission will come into force on September 1, 2022. The "Regulations" optimize the design requirements of equity structure, treat domestic and foreign insurance company shareholders of insurance asset management companies equally, and cancel the cap on foreign ownership. Uniform conditions are set for all types of shareholders, and the management of shareholders of non-financial enterprises is strictly enforced. It also optimized the operating principles and related requirements, refined the business scope of insurance asset management companies, increased the basic principles of entrusted management of various types of funds, clearly required the establishment of custody mechanisms, improved asset independence and prohibited the expression of debt offset, prohibited the development of channel business, and made provisions on sales management and prudent operation.
The CBRC said that the "Provisions" have taken into account the problems existing in the current development of insurance asset management companies and the development direction of the future period, forming a relatively complete system and a more distinctive institutional regulatory system framework, providing space for the market-oriented operation and differentiated development of insurance asset management companies. It is conducive to guiding and promoting the standardized operation and high-quality development of insurance asset management companies, helping to better meet the preservation and appreciation needs of long-term funds such as insurance funds, and cultivating more stable institutional investors for the stable and healthy operation of the capital market and the high-quality development of the real economy.
The Notice on Matters Related to the Issuance of unfixed Term Capital Bonds by Insurance Companies issued by the People's Bank of China and the China Banking and Insurance Regulatory Commission clarifies the core elements and issuance management of unfixed term capital bonds by insurance companies, which will be implemented from September 9, 2022.
Unfixed term capital bonds refer to capital replenishment bonds issued by insurance companies with no fixed term, including write-down or equity transfer clauses, which can absorb losses and meet the solvency regulatory requirements under the state of continuing operation and bankruptcy liquidation.
The regulatory authorities said that promoting the issuance of non-fixed term capital bonds by insurance companies is an important measure to further broaden the capital replenishment channels of insurance companies and improve the adequacy level of the core solvency of insurance companies, which is conducive to enhancing the ability of insurance companies to prevent and resolve risks and serve the real economy, and is also conducive to further enriching financial market products and optimizing the structure of the financial system. In the next step, the People's Bank of China and the China Banking and Insurance Regulatory Commission will steadily and orderly organize the issuance of non-fixed term capital bonds by insurance companies, continue to strengthen information disclosure requirements, effectively safeguard the rights and interests of investors, and continue to strengthen the supervision and management of financing behaviors of insurance companies, so as to improve the ability of insurance companies to prevent financial risks and serve the real economy.
The National Development and Reform Commission, the Ministry of Industry and Information Technology and other 13 departments issued the "Several Opinions on the Strict Implementation of Bidding Regulations and Systems to Further Regulate the behavior of Tendering and bidding entities", which will come into force on September 1, 2022. In view of the outstanding problems existing in the current bidding and tendering market, the implementation of the main responsibility of the tenderer is not in place, the evasion of bidding, false bidding, bidding and bidding, the intervention of relevant departments and leading cadres and other illegal behaviors are still prone to high occurrence, the "Opinions" put forward 20 practical measures from five aspects, aiming to further consolidate the main responsibility of all parties and strengthen the sense of self-discipline. To ensure the strict implementation of bidding laws and regulations, and promote the standardized, orderly and healthy development of the bidding market.
The National Development and Reform Commission (NDRC) said downward pressure on China's economy has increased significantly since March this year, and stabilizing investment is crucial to keeping the economy operating within a reasonable range. Accelerating the construction of major projects is an important support for expanding domestic demand and stabilizing the broader economy, and a key measure to optimize the supply structure and promote high-quality development. Tendering and bidding is an important link before the start of major projects. We should not only uphold openness, fairness and justice, but also improve the efficiency of bidding and procurement, and speed up the progress of project construction.
On August 10, the Ministry of Finance and the Ministry of Education issued the newly revised Financial System for Primary and Secondary Schools, which will be officially implemented from September 1, 2022. The document specifies that schools with compulsory education are not allowed to invest abroad. Schools at the stage of non-compulsory education shall strictly control foreign investment. Overseas investment using state-owned assets shall be conducive to the development of undertakings and realize the preservation and appreciation of state-owned assets, conform to the relevant provisions of the State, and be conducted in accordance with the prescribed limits of authority and procedures after feasibility studies and collective decision-making. It is not allowed to use fiscal appropriations and their balance to invest abroad, and it is not allowed to invest in stocks, futures, funds, corporate bonds, etc.
The Regulations on Housing Leasing in Beijing will come into effect on September 1, 2022. The Regulations highly respond to the concerns of the public, stipulating that the lessor shall not expel the tenant by abnormal means such as cutting off water and power, threatening violence, etc. The rental house shall comply with relevant building, public security, indoor air quality and other safety regulations and standards, and shall not break partitions to change the internal structure of the house. In view of people's concern about the problem of rent increase, the corresponding price intervention mechanism is also clarified.
On August 19, the Beijing Municipal Medical Security Bureau issued the Notice on Adjusting the relevant policies of Basic Medical Insurance for Urban Employees in the City, and from September 1, 2022, the funds of individual accounts are earmarked for special purposes, and insured personnel cannot withdraw them. Insured personnel use personal accounts in accordance with regulations. Personal account funds allocated before September 1, 2022 can still be withdrawn. From September 1, 2022, all the basic medical insurance premiums paid by employees will be credited to their personal accounts, and the standard will be 2% of their insurance contribution base, and all the basic medical insurance premiums paid by employers will be credited to the overall pooling fund.
