China Banking and Insurance Regulatory Commission: insurance funds, pensions, etc. can be legally invested in debt-to-equity investment plans
China News Agency, Beijing, May 6 (Reporter Wang Enbo) China Banking and Insurance Regulatory Commission announced on the 6th "Notice on Matters Related to the Asset Management Business of Financial Asset Investment Companies", which mentions that insurance funds, pensions, etc. can be invested in debt to equity investment plan.
The so-called financial asset investment company refers to a non-bank financial institution established in China with the approval of the State Council ’s banking supervision agency and mainly engaged in the conversion of bank debt into equity and supporting services.
The “Notice” made it clear that financial asset investment companies can accept the entrustment of investors, establish debt-to-equity investment plans and act as managers, in accordance with the laws and regulations and the debt-to-equity investment plan contract, invest in trustee ’s property and management. The debt-to-equity investment plan should mainly invest in market-oriented debt-to-equity assets, including debts, convertible bonds, special debt-to-equity bonds, common stocks, preferred stocks, debt-to-preferred stocks, etc. assets.
In terms of investment operations, the "Notice" stated that the debt-to-equity investment plan can invest in a single market-based debt-to-equity asset, or it can be invested in an asset portfolio. In portfolio investment, market-oriented debt-to-equity swap assets should in principle be no less than 60% of the net assets of the debt-to-equity swap investment plan.
In terms of fund raising, the "Notice" emphasizes that financial asset investment companies should issue debt-to-equity investment plans to qualified investors through non-public means, and strengthen the appropriate management of investors. The government has clearly defined qualified investors, requiring them to be natural persons, legal persons or other organizations that have the ability to identify risks and take risks that are compatible with the debt-to-equity investment plan and meet certain conditions.
Specifically, one has more than 4 years of investment experience and meets the family's net financial assets of not less than 5 million yuan (RMB, the same below), or the family's financial assets is not less than 8 million yuan, or the average annual average of the past 3 years One of the three conditions with an income of not less than 600,000 yuan; second is a legal entity with a net asset of not less than 20 million yuan at the end of the most recent year; and third is other circumstances in which the China Insurance Regulatory Commission regards it as a qualified investor.
Regarding the investment entry threshold, the "Notice" also stated that financial asset investment companies can use their own funds, legally raised or managed funds specifically used for market-oriented debt-to-equity investments to invest in the company or other financial asset investment companies as managers. Debt-to-equity investment plan, but may not use the funds managed to invest in the company's debt-to-equity investment plan. (Finish)