China News Service, July 1, according to the website of the China Insurance Regulatory Commission, recently, the China Insurance Regulatory Commission issued the "Measures for Insurance Funds to Participate in Financial Derivatives Trading", "Regulations for Insurance Funds to Participate in Treasury Futures Trading" and "Regulations for Insurance Funds to Participate in Stock Index Futures Trading". This document aims to regulate the participation of insurance funds in financial derivative product transactions, prevent the use of funds, and safeguard the legitimate rights and interests of insurance parties.
Data Map: China Banking and Insurance Regulatory Commission. Photo by Jia Tianyong, China News Agency reporter
The document proposes that insurance funds participate in stock index futures trading. At the end of any trading day, any asset portfolio holds the value of the sold stock index futures contract that cannot exceed the management of its hedged stocks, stock funds and other net worth equity assets. 102% of the book value of the product asset, the sum of the value of the stock index futures contract held and the market value of stocks, stock funds and other net-value equity asset management products, shall not exceed 100% of the net asset value.
In addition, insurance funds participating in stock index futures trading should not be used for speculative purposes, and should be used for hedging or risk avoidance purposes, including: hedging or avoiding the risk of existing assets; hedging the risk of buying assets within the next three months, or locking their future Trading price. Insurance funds participating in stock index futures trading shall establish a futures trading account on the basis of a determined asset portfolio (referred to as asset portfolio), and implement independent management of accounts, assets, transactions, and accounting.
The China Insurance Regulatory Commission pointed out that the next step will be to promote the orderly participation of insurance institutions in the treasury bond futures market and promote the healthy development of the treasury bond futures market. At the same time, continue to strengthen the supervision of insurance funds to participate in financial derivatives transactions, improve the information system, do a good job in risk monitoring, identification and early warning.