China Banking and Insurance Regulatory Commission: The risk factor for insurance companies holding ordinary shares of Sci-Tech Innovation Board listed companies for more than two years has been lowered from 0.4 to 0.36.

On December 5th, the China Banking and Insurance Regulatory Commission issued a notice on adjusting the business risk factors of insurance companies. The notice mentioned that the risk factors for holding Shanghai and Shenzhen 300 Index component stocks and CSI Dividend Low Volatility 100 Index component stocks for more than three years were lowered from 0.3 to 0.27. The holding period is determined based on the weighted average holding period of the past six years. The risk factors for holding Sci-Tech Innovation Board listed common stocks for more than two years were lowered from 0.4 to 0.36. The holding period is determined based on the weighted average holding period of the past four years. In addition, the risk factors for export credit insurance business and China Export Credit Insurance Corporation's overseas investment insurance business were lowered from 0.467 to 0.42 for premium risk factors and from 0.605 to 0.545 for reserve risk factors. The notice also emphasized the need for insurance companies to enhance internal control, accurately measure the holding period of investment stocks, and continuously improve long-term fund investment management capabilities. Insurance companies are also required to strengthen solvency management, accurately measure various risk capital requirements, and ensure that all solvency data are true, accurate, and complete. Any inconsistencies with other documents regarding the above-mentioned business risk factors shall be subject to this notice.