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The CBIRC issued ”the notice of the insurance funds participating in the long-term rental market“



June 1st, the China Bank & Insurance Regulatory Commission issued "the notice of the insurance funds participating in the long-term rental market", focusing on the mode of participation, product set up conditions and other aspects of insurance funds to participate in long-term rental market requirements.

The contents of the notice are as follows:

First, insurance companies participate in the long-term rental market by direct investment, insurance asset management agencies through the initiation of the establishment of debt investment plan, equity investment plan, asset support plan, insurance private equity funds , the investment of long term rental housing projects should meet the following conditions:

(a) Having good economic and social benefits and having a stable current or expected cash flow;

(b) A large pilot city in Beijing, Shanghai, the new district and the net influx of people.

Where the nature of land is a collective construction site, it should be in the pilot city of building rented housing for collective construction land;

(c) Clear property rights, no ownership of disputes and limited circumstances;

(d) The land transfer contract or the land use right certificate stipulates that the land and the ground building are only used for renting housing, and may not be transferred;

(e) To perform the approval procedures necessary for the project, planning, construction, completion, acceptance and operation management, or to perform the approval procedures necessary for the construction phase of the projects.

Second, the insurance Asset Management Agency initiates the establishment of investment in long-term rental housing projects of the debt Investment plan, equity investment plans and other insurance assets management products and insurance funds, should meet the following conditions:

(a) The use of debt investment plan, the financing of its own cash flow accounted for all the debt should be the proportion of the principal and interest of 100% (inclusive);

(b) The use of equity investment plans and insurance private equity funds, the project company's core assets are leased housing projects, the project company equity may not be a third party to provide a pledge, and set up an effective exit mechanism. Third, the insurance institution invests the long-term renting the housing project, should request the financing main body and the project main body to strengthen the project construction stage management, according to the project schedule allocates the fund, and contracts with the financing main body, the project main body, the custodian bank to sign the multi-party account Supervision contract or the agreement, clear each

Third, to urge the bank and the custodian bank to carry out the whole process of capital access monitoring, strict review of funds and the acquisition of the price, to ensure that the funds closed operation, earmarked for the investment of rented housing projects or upgrading, not diverted for his use.

Fourth, the insurance Company shall follow the principle of prudent conservatism and safety, take into account its balance sheet, solvency status and liquidity requirement, formulate the investment budget of the long-term rental housing project and incorporate the annual asset allocation plan.

Fifth, the Insurance institution shall establish the corresponding special post, be responsible for the post management of all the long rental housing projects during the investment period, and establish the whole process management system, take effective wind control measures in the aspects of debt control, payment, project progress, rent refund and asset mortgage, and control the investment risk.

Seventrh, the Insurance Asset Management organization invests the long-term renting the housing project through the creditor's rights investment plan, the equity investment plan, the insurance private fund and so on, the relevant registration establishment accepts and registers the green channel, the priority accepts.

Eighth, this notice shall be implemented from the date of release.

Source: the China Bank & Insurance Regulatory Commission