AsianFin -- China’s National Financial Regulatory Administration (NFRA) has issued a new notice aimed at further expanding the pilot program for equity investments by financial asset investment companies.
The "Notice on Further Expanding the Pilot Program for Equity Investments by Financial Asset Investment Companies" proposes extending the equity investment scope of these companies to the provinces where pilot cities are located.
The Notice specifies that related funds can now conduct equity investments within the provinces of pilot cities. This expansion is expected to broaden the range of supported projects, attract more social capital to participate in fundraising, reduce operational costs, and improve overall efficiency.
The Notice also reaffirms China’s support for qualified commercial banks to establish financial asset investment companies. To date, the five major commercial banks have already set up such companies, which are actively exploring innovative models for financial support of technological innovation through the pilot program.
Additionally, the Notice encourages the participation of insurance funds in the equity investment pilot program. It explicitly supports insurance funds in legally and compliantly investing in private equity funds issued by subsidiaries of financial asset investment companies, bonds issued by these companies, or taking equity stakes in them.
This move is part of China’s broader efforts to enhance financial support for technological innovation and economic development, leveraging the expertise and resources of financial asset investment companies and insurance funds to drive growth and efficiency.
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