Core Viewpoint - The recent notification from the Financial Regulatory Bureau aims to adjust the risk factors for insurance companies' investment in stocks, enhancing the efficiency of capital usage and supporting the real economy [1][2]. Group 1: Adjustments to Risk Factors - The risk factor for stocks held by insurance companies for over three years in the CSI 300 and the CSI Low Volatility 100 Index has been reduced from 0.3 to 0.27 [1]. - The risk factor for stocks in the Sci-Tech Innovation Board held for over two years has been lowered from 0.4 to 0.36 [1]. - The calculation of holding periods for these stocks is based on weighted averages over the past six years for the former and four years for the latter [1]. Group 2: Impact on Capital and Investment - Lowering the risk factors will directly reduce the capital required for equity assets, allowing insurance companies to allocate more funds to stock market investments [2]. - This adjustment, combined with previous policy changes to increase the equity investment ratio limit, is expected to lead to greater investment in high-growth sectors, thereby fostering patient capital and supporting technological innovation [2]. Group 3: Other Risk Factor Adjustments - The risk factors for export credit insurance and overseas investment insurance by the China Export & Credit Insurance Corporation have also been reduced, with premium risk factors decreasing from 0.467 to 0.42 and reserve risk factors from 0.605 to 0.545 [2]. - These changes are intended to encourage insurance companies to provide more support to foreign trade enterprises and effectively serve national strategies [2]. Group 4: Internal Control and Management - The notification emphasizes the need for insurance companies to enhance internal controls, accurately measure stock holding periods, and continuously improve long-term capital investment management capabilities [3]. - It also stresses the importance of strengthening solvency management and ensuring that all solvency data is accurate, complete, and truthful [3].