Mei Ri Jing Ji Xin Wen·2025-12-07 13:26Core Viewpoint - The Financial Regulatory Administration has announced a reduction in risk factors for insurance companies' related businesses to enhance their capital efficiency and support the real economy [1][2]. Group 1: Adjustments to Risk Factors - The notification primarily focuses on two areas: adjusting risk factors for investments in stocks and for export credit insurance businesses, encouraging insurance companies to support foreign trade enterprises [2][3]. - The risk factor for stocks held for over three years in the CSI 300 index has been reduced from 0.3 to 0.27, while for stocks held over two years in the STAR Market, it has been lowered from 0.4 to 0.36 [2][3]. - The risk factor for export credit insurance premiums has been decreased from 0.467 to 0.42, and the reserve risk factor from 0.605 to 0.545 [2]. Group 2: Implications for Insurance Companies - The reduction in risk factors is intended to guide insurance funds into the equity market as long-term capital, thereby alleviating the solvency pressure on insurance companies [3][4]. - Insurance companies are expected to enhance their internal controls and accurately measure investment holding periods to improve long-term capital management capabilities [3][4]. - Following the announcement, insurance stocks saw significant gains, with China Pacific Insurance rising by 6.85% and Ping An Insurance by 5.88% [3]. Group 3: Historical Context and Future Outlook - This is not the first time the Financial Regulatory Administration has lowered risk factors; previous adjustments were made in September 2023 and May 2023 to encourage insurance companies to support the capital market [5][6]. - The adjustments are seen as a means to optimize capital allocation, allowing insurance companies to invest more in quality assets and enhance overall operational efficiency [6][7]. - The policy changes are expected to facilitate greater investment in strategic industries and high-tech enterprises, thereby promoting innovation and economic development [7].