Core Viewpoint - The recent notification from the National Financial Supervisory Administration adjusts risk factors for insurance companies' related businesses, aiming to enhance long-term investment management and support the real economy while maintaining risk control [2][4]. Group 1: Background of the Notification - The notification was issued to effectively prevent risks, guide insurance companies in improving long-term investment management capabilities, and strengthen asset-liability matching management [4]. - It aims to better utilize insurance funds as patient capital and effectively serve the real economy [4]. Group 2: Impact on the Insurance Industry - The notification adjusts risk factors for investments in specific stock indices, such as the CSI 300 and the CSI Dividend Low Volatility 100, based on holding periods to cultivate patient capital and support technological innovation [5]. - It also modifies risk factors for export credit insurance and overseas investment insurance to encourage insurance companies to increase support for foreign trade enterprises and effectively serve national strategies [5]. Group 3: Specific Adjustments to Risk Factors - For stocks held for over three years in the CSI 300 and CSI Dividend Low Volatility 100, the risk factor is reduced from 0.3 to 0.27 [9]. - For stocks in the Sci-Tech Innovation Board held for over two years, the risk factor is lowered from 0.4 to 0.36 [10]. - The risk factor for export credit insurance premiums is decreased from 0.467 to 0.42, and for reserves, it is reduced from 0.605 to 0.545 [10]. Group 4: Holding Period Calculation - The holding period for stocks, such as those listed on the Sci-Tech Innovation Board, is calculated using a weighted average based on the past four years, with a maximum consideration of four years [6]. - Stocks held for more than two years will apply a risk factor of 0.36 [6]. Group 5: Internal Control and Management - Insurance companies are required to enhance internal controls to accurately measure the holding periods of investments in stocks and continuously improve long-term capital investment management capabilities [11]. - They must also strengthen solvency management to ensure that all solvency data is true, accurate, and complete [12].