What impact does the “Notice” have on the insurance industry serving the real economy? First, the “Notice” targets risk factors for Shanghai and Shenzhen 300 Index constituent stocks, China Securities Dividend Low Volatility 100 Index stocks, and Science and Technology Innovation Board stocks invested by insurance companies according to position time to cultivate and expand patient capital and support scientific and technological innovation. Second, the “Notice” adjusted premium risk factors and reserve risk factors for insurance companies' export credit insurance business and China Export Credit Insurance companies' overseas investment insurance business to guide insurance companies to increase their support for foreign trade enterprises and effectively serve the national strategy. How is the position holding time specified in the Notice calculated? A: Take investing in common stocks listed on the Science and Technology Innovation Board as an example. According to the first-in, first-out principle, insurance companies use a weighted average method to calculate their holding time for the past four years. If the position has been held for more than two years, a risk factor of 0.36 is applied. How are the risk factors related to the “Notice” adjusted in detail? A: The first is the adjustment of risk factors for relevant stock investments. The basic factors in Article 26 of the “Insurance Company Solvency Supervision Rules No. 8: Minimum Market Risk Capital” remained unchanged, and the characteristic coefficient K1 remained unchanged. The characteristic coefficient K2 was adjusted accordingly for specific sector categories of the Shanghai and Shenzhen 300 Index constituent stocks and China Securities Dividend Low Volatility 100 Index constituents that have been held for more than three years, as well as common stocks listed on the Science and Technology Innovation Board for more than two years. The second is the adjustment of risk factors for export credit insurance business and overseas investment insurance business. The basic factors applied in Articles 15 and 28 of the “Insurance Company Solvency Supervision Rules No. 4: Minimum Capital for Insurance Risk” were adjusted, and the relevant characteristic coefficients remained unchanged. Insurance companies' solvency supervision information systems will be adjusted accordingly at the same time.

What impact does the “Notice” have on the insurance industry serving the real economy? First, the “Notice” targets risk factors for Shanghai and Shenzhen 300 Index constituent stocks, China Securities Dividend Low Volatility 100 Index stocks, and Science and Technology Innovation Board stocks invested by insurance companies according to position time to cultivate and expand patient capital and support scientific and technological innovation. Second, the “Notice” adjusted premium risk factors and reserve risk factors for insurance companies' export credit insurance business and China Export Credit Insurance companies' overseas investment insurance business to guide insurance companies to increase their support for foreign trade enterprises and effectively serve the national strategy. How is the position holding time specified in the Notice calculated? A: Take investing in common stocks listed on the Science and Technology Innovation Board as an example. According to the first-in, first-out principle, insurance companies use a weighted average method to calculate their holding time for the past four years. If the position has been held for more than two years, a risk factor of 0.36 is applied. How are the risk factors related to the “Notice” adjusted in detail? A: The first is the adjustment of risk factors for relevant stock investments. The basic factors in Article 26 of the “Insurance Company Solvency Supervision Rules No. 8: Minimum Market Risk Capital” remained unchanged, and the characteristic coefficient K1 remained unchanged. The characteristic coefficient K2 was adjusted accordingly for specific sector categories of the Shanghai and Shenzhen 300 Index constituent stocks and China Securities Dividend Low Volatility 100 Index constituents that have been held for more than three years, as well as common stocks listed on the Science and Technology Innovation Board for more than two years. The second is the adjustment of risk factors for export credit insurance business and overseas investment insurance business. The basic factors applied in Articles 15 and 28 of the “Insurance Company Solvency Supervision Rules No. 4: Minimum Capital for Insurance Risk” were adjusted, and the relevant characteristic coefficients remained unchanged. Insurance companies' solvency supervision information systems will be adjusted accordingly at the same time.