State Administration of Financial Supervision and Management: The scope of equity investment of financial asset management companies will be expanded to the provinces where the pilot cities are located.

On March 5th, the China Banking and Insurance Regulatory Commission issued the "Notice on Further Expanding the Pilot Program for Equity Investments by Financial Assets Investment Companies". The pilot program will be expanded in the following three ways: Firstly, the scope of equity investment by financial assets investment companies will be expanded to the provinces where the pilot cities are located. Previously, the pilot policy only allowed financial assets investment companies to conduct equity investments within the pilot cities through private equity investment funds issued by subsidiary institutions. The notice clarifies that relevant funds can now conduct equity investments within the provinces where the pilot cities are located, which will help expand the scope of project support for funds, attract more social funds to participate in fund-raising, reduce fund operation costs, and improve operational efficiency. Secondly, support will be provided for eligible commercial banks to establish financial assets investment companies. Currently, financial assets investment companies established by five large commercial banks have explored important models for supporting technological innovation in the financial sector. Increasing the number of institutions participating in the pilot program in a prudent and orderly manner will help mobilize more funds and resources to participate in the pilot program and further increase support for technological innovation and private enterprises. Thirdly, support will be given for insurance funds to participate in the pilot program for equity investments by financial assets investment companies. The notice specifies that insurance funds can lawfully and compliantly invest in private equity investment funds issued by financial assets investment companies through subsidiary institutions, bonds issued by financial assets investment companies, or take equity stakes in financial assets investment companies. This will help leverage the long-term investment advantages of insurance funds, broaden the funding sources for equity investment pilots, and further enrich the diversified financing system for technology enterprises. In the future, the China Banking and Insurance Regulatory Commission will work with relevant departments to promote the optimization and improvement of the equity investment environment, guide financial assets investment companies to continuously improve institutional processes, strengthen talent building, optimize performance evaluation systems, enhance risk control, continuously improve equity investment management capabilities, better support technological innovation, and serve the high-quality development of the private economy.