Take the initiative to leave, forced to transfer, this year, insurance companies in changes in equity are very frequent. Recently, TF Securities and Renfu Medicine have successively announced that they intend to sell their shares in Huatai Insurance, which is only a microcosm of this year’s insurance company changes in equity. On November 24th, beijing business today reporter found out that 19 insurance companies issued 23 equity change announcements, which did not include capital increase and share expansion, and three other insurance companies were listed on the property rights exchange for sale.

What types of equity change frequently? Which shareholders are withdrawing? What types of investors plan to enter the market? What mysteries are hidden behind the equity change of insurance companies?

Active divestiture, passive debt repayment, and intensive changes in the equity of insurance companies during the year.

Recently, TF Securities and Renfu Pharmaceutical announced that they plan to transfer all the shares of Huatai Insurance, and the transferee is Anda North America Holdings, with a total transfer ratio of 6.97% and a total transfer price of 2.833 billion yuan.

Regarding the issue of equity change, the relevant person in charge of Huatai Insurance said that it is the right of shareholders to transfer their shares for their own needs, and Huatai Insurance Group Company respects the decisions made by shareholders for their own consideration.

The transfer of Huatai Insurance’s equity is only the tip of the iceberg of insurance company changes in equity this year. On November 24th, beijing business today reporter found out that there were 23 equity changes in 19 insurance companies during the year, including 4 insurance group companies, 1 reinsurance company, 6 property insurance companies and 8 personal insurance companies. In addition, some shares of insurance companies such as Great Wall Life Insurance, yongcheng Property Insurance and Guoren Property Insurance are still listed on the property rights exchange for buyers.

The reasons for changes in equity, an insurance company, can be roughly classified into three categories: First, shareholders focus on their main business and take the initiative to divest non-core assets. For example, Renfu Medicine stated in the equity transfer announcement that in recent years, the company has strictly implemented the "refocusing" work, actively promoted business focus and asset optimization, and gradually withdrew from the sub-sectors where the competitive advantage is not obvious or the synergy effect is weak. Datang Capital also listed on the Shanghai United Assets and Equity Exchange due to its return to its main business, and plans to sell its 7.6% stake in yongcheng Property Insurance.

Second, due to the debt problem of some shareholders, the equity of insurance companies was paid in kind. This year, China Minsheng Trust Co., Ltd. successively acquired 17.3% and 2.7% equity of Asia Pacific Property Insurance in the form of "paying debts in kind" and became the second largest shareholder of Asia Pacific Property Insurance. The 4.326%, 1.536% and 1.536% shares of China United Property Insurance held by Zhongrong Xinda Group were transferred to three rural commercial banks in Jilin Province.

Third, shareholders sell the equity of insurance companies for capital needs, or the initial investment of shareholders is financial investment, and after the investment goal is achieved, they transfer and leave. These situations mostly occur in small and medium-sized insurance companies.

What impact will frequent changes in equity bring to insurance companies? Zhu Junsheng, deputy director of the Insurance Research Office of the Financial Research Institute of the State Council Development Research Center, said that a small proportion of changes in equity will not bring too much influence to insurance companies, while a large proportion of equity changes will lead to changes in the senior management and board members of insurance companies, which will also affect the sustainability of insurance companies’ development strategies.

Guo Zhenhua, director of the insurance department of Shanghai University of International Business and Economics, analyzed the above problems from the shareholder level. Guo Zhenhua said that if new shareholders are familiar with insurance business or have strong economic strength, it will be beneficial to insurance companies. If new shareholders have unrealistic illusions about the insurance industry, it may disrupt the original development strategy of insurance companies.

Equity transfer of small and medium-sized insurance companies is more frequent.

Judging from the body size of the subject being traded, beijing business today reporter found that most of the subjects whose shares were transferred were small and medium-sized insurance companies. Such as Huahai Property Insurance, Ancheng Property Insurance, Shidai Property Insurance, Love Life Insurance, Luxury Life Insurance, Sino-German Allianz Life Insurance, Guoyuan Agricultural Insurance, Dingcheng Life Insurance, Caixin Jixiang Life Insurance, etc. By the end of the third quarter, the net assets of these insurance companies were all below 5 billion yuan.

Why are equity transfers of small and medium-sized insurance companies more frequent? Zhu Junsheng said that at present, many small and medium-sized insurance companies are facing business pressure and have not even entered the profit period. In order to maintain solvency, shareholders need to continue to inject capital. Some shareholders are not willing to increase capital and may sell their shares. Insurance companies themselves need to introduce new shareholders to obtain financial support. Guo Zhenhua also believes that at present, large-scale insurance companies have strong profitability and shareholders can enjoy dividends. The operation of small and medium-sized insurance companies is unstable, and shareholders’ willingness to hold them is relatively low.

As far as the development status of the insurance industry is concerned, Li Wenzhong, deputy director of the Insurance Department of Capital University of Economics and Business, said that the current industry development is in a downward cycle, but the prospects are very good, which leads to the current shareholders under pressure to be eager to cash in, and investors who are optimistic about long-term development can hold equity at a lower cost, making trading more active. The liquidity of large companies’ equity in the transfer market is poor, so we see more equity transfer of small and medium-sized companies.

In addition, from the degree of transaction difficulty, Guo Zhenhua analyzed that small and medium-sized insurance companies have simple ownership structure and low transaction volume, which makes it easier to trade.

The enthusiasm for "overweight" of foreign capital is high

Among the transferees of insurance companies’ equity, foreign-funded insurance companies are more willing to enter the market. Many foreign-funded insurance companies have deepened the layout of China’s insurance industry through equity acquisition and strategic investment, such as Kailin Reinsurance Swiss Company, Allianz Group, AIA and Anda American Insurance Company.

In addition to Huatai Insurance changes in equity mentioned above, in January this year, Kailin Reinsurance Swiss Company acquired the entire equity of Xinli Reinsurance through equity acquisition; In June, AIA acquired about 25% equity of China Post Life Insurance in the form of strategic investment, and the above-mentioned changes in equity still needs regulatory approval.

In addition, Allianz Insurance accepted the assignment of CITIC Trust, acquired 49% equity of Sino-German Allianz Life Insurance, and has wholly controlled Sino-German Allianz Life Insurance.

Foreign-funded insurance companies continue to increase their layout in the domestic market, benefiting from the deepening opening up of China’s financial industry. Previously, the foreign shareholding ratio of life insurance companies did not exceed 50%, and it was later relaxed to 51%. At present, this restriction has been lifted. Zhu Junsheng analyzed that breaking through the equity ratio is the core appeal of foreign capital. Previously, due to policy restrictions, foreign capital could only enter the market in the form of joint ventures. Now that the policy has been adjusted, foreign capital will have different choices.

Market potential is also an important reason why foreign insurance companies are optimistic about the China market. Zhu Junsheng pointed out that the focus of the global insurance market has been moving eastward, and China is an important driving force. China’s demographic changes and economic development mean that the insurance industry has great development potential. Many foreign investors see this and hope to better implement their own market strategy.

What impact will the frequent entry of foreign capital bring to the domestic market? Zhu Junsheng said that with the further opening of China’s insurance market, the entry of foreign capital can promote effective competition in the domestic market and bring about an increase in market efficiency; It will also enable foreign advanced experience to better land in China.

Another professional told beijing business today that foreign-funded insurance companies can also bring some differentiated products, especially those for high-net-worth people lacking in the domestic market.

Beijing business today reporter Chen Tingting intern reporter Li Xiumei

No.8 [2020] of the State-owned Assets Enrichment Appraisal Regulation

Central enterprises:

In recent years, according to the regulatory requirements, central enterprises have prudently carried out financial derivatives business, strengthened business supervision and management, effectively used the hedging function of financial derivatives, and hedged the risk of fluctuations in commodity prices and interest rates and exchange rates, which has played a positive role in stabilizing production and operation. However, during the supervision, we also found that some enterprises have some problems, such as inadequate group control, lax business approval, irregular operating procedures, speculative incentives and untimely, inaccurate and incomplete business reports. In order to urge the central enterprises to effectively strengthen the management of financial derivative business and establish a financial derivative business supervision system with "strict control, standardized operation and controllable risks", relevant matters are hereby notified as follows:

The financial derivative business referred to in this Notice mainly includes the commodity derivative business (referring to the financial derivative business with commodities as the underlying assets, including commodity futures and options) and currency derivative business (referring to the financial derivative business with currencies or interest rates as the underlying assets, including forward contracts, futures, options and swaps) that central enterprises engage in at home and abroad. Financial derivative business is leveraged, complex and risky. All central enterprises should earnestly enhance their risk awareness, strengthen group management and control, establish and improve a unified management system, strictly examine and approve business, and implement regulatory responsibilities.

(1) Adhere to the principle of specialized centralized management, and in principle, similar financial derivative businesses within the Group will be operated centrally by a unified platform. The board of directors of the Group is responsible for approving the business qualifications of subsidiaries (hereinafter referred to as operating entities) that specifically carry out financial derivative business, and the Group is responsible for approving the annual business plan. Sub-enterprises with asset-liability ratio higher than the control line of SASAC, operating losses for three consecutive years and tight funds may not carry out financial derivative business.

(II) When approving business qualifications, the board of directors of the Group shall fully demonstrate the objective needs and necessity of business development, strictly examine and evaluate the soundness and effectiveness of business management system and risk management mechanism, as well as the rationality of institutional setup and professional competence of personnel. The approval items shall specify the trading place, varieties and tools. When the approved items are changed, they shall be re-approved by the board of directors of the Group. The risk management committee under the board of directors or the professional committee responsible for risk management shall put forward clear audit opinions on the approval of business qualifications, which shall be the necessary elements for submission to the board of directors for decision. The business qualification approved by the board of directors of the Group shall be reported to the SASAC for the record in a timely manner.

(III) When examining and approving the annual business plan, the Group should carefully examine the physical goods scale, hedging scale, hedging strategy, capital occupation scale, stop loss limit (or loss warning line) and other contents, and strictly examine and evaluate the off-exchange business.

(4) The Group shall specify the person in charge of the financial derivative business, designate the centralized management department, and implement the supervision responsibilities of relevant departments. The risk management department is responsible for business risk monitoring; The financial department is responsible for the monitoring of funds, especially the deposit; The legal department is responsible for the legal risk assessment of the contract text; The audit department is responsible for regular audit supervision.

To carry out financial derivative business, we should strictly abide by the principle of hedging, aim at reducing the risk exposure of the real goods, match the variety, scale, direction and duration of the real goods, and adapt to the financial strength and transaction processing ability of the enterprise, and must not carry out any form of speculative transactions.

(a) the variety of transactions shall be closely related to the main business operation and shall not exceed the prescribed business scope. Trading tools should have simple structure, strong liquidity and recognizable risks. Generally speaking, the holding time shall not exceed 12 months or the time stipulated in the physical goods contract, and shall not blindly engage in long-term business or extension.

(2) The annual hedging scale of commodity derivative business shall not exceed 90% of the annual physical business scale, and the annual hedging scale of financial derivative business for commodity trade shall not exceed 80% of the annual physical business scale. The scale of the net position at the time point shall not exceed the risk exposure of the corresponding physical goods. To implement variety classification management, the scale indicators of different subsidiaries and different trading varieties shall not be borrowed from each other or used together. The establishment, adjustment and cancellation of hedging correspondence should meet the actual needs of production and operation and avoid frequent short-term transactions.

(3) The scale and duration of the currency derivative business shall be within the scope of the capital demand contract, and in principle, it shall correspond to the capital demand contract one by one.

(4) Enterprises that have started new business or suffered heavy losses due to illegal operations in previous years shall carefully set the business scale and appropriately compress and control it.

(5) Establish a scientific and reasonable incentive and restraint mechanism, comprehensively judge the profit and loss of financial derivative business and the profit and loss of physical goods, objectively evaluate the hedging effect of business, and do not simply link performance appraisal and salary incentives with the unilateral profit and loss of financial derivative business to prevent one-sided emphasis on the unilateral profit of financial derivative business from leading to speculation.

Establish an effective financial derivative business risk management system, improve the internal control mechanism, improve the information system, strengthen risk early warning, and cover all aspects of pre-prevention, in-process monitoring and post-treatment.

(1) The Group shall formulate a financial derivative business management system, specifying the responsibilities of relevant departments, business approval procedures, risk management requirements, stop loss limit (or loss warning line), emergency handling, supervision and inspection, and accountability. The operating entity shall formulate a special business operation manual or compliance manual.

(2) The Group shall establish a vertical risk management system for financial derivatives business, and the risk management department of the operating entity shall independently report risks or irregularities to the Group.

(3) The Group shall monitor business risks through information means such as risk management information system, and realize comprehensive coverage and online monitoring. Operators of commodity derivative business should establish and improve business information system, accurately record and transmit all kinds of transaction information, solidify system requirements, standardize operation procedures and block illegal operations.

(4) The Group and the operating entities shall establish a risk early warning and disposal mechanism, adopt quantitative and qualitative methods to identify market risks, credit risks, operational risks and liquidity risks in a timely manner, and clarify the disposal authority and procedures for different types and degrees of risks.

(5) In case of major risks, it is necessary to start the risk emergency handling mechanism in time, set up a special working organization, formulate a detailed disposal plan, properly do a good job in position stop loss, legal dispute case handling, public opinion response, etc., and establish a daily or weekly report system to prevent the risk from expanding and spreading.

Operators should strengthen the implementation of internal control, strictly manage compliance, and standardize authorization approval, transaction operation, fund use and regular reporting.

(1) Set up independent risk management departments, trading departments and financial departments, and strictly implement the principle of separation of posts and personnel in front, middle and back offices. Establish regular rotation and training system. Enterprises that only carry out currency derivative business with low frequency and small business scale may not set up separate risk management departments and trading departments, but the principle of separation of incompatible posts and personnel must be strictly implemented.

(2) The board of directors or similar decision-making body of this enterprise is responsible for the examination and approval of transaction authorization. Authorization shall specify the list of persons with trading authority, trading varieties and quotas. When the responsibilities of personnel change, the authorization shall be suspended or re-authorized in time. It is strictly forbidden for the person in charge of the enterprise to directly trade.

(three) the trading department shall formulate specific operation plans according to the approved business plan, and operate after approval according to the prescribed procedures. For an unapproved operation plan, the financial department may not allocate funds or conduct transaction settlement.

(4) When conducting over-the-counter business, a separate risk assessment shall be conducted on trading tools, counterparty credit, contract text, etc., and the counterparty shall be carefully selected to conduct business.

(five) the implementation of special management of deposit and other capital accounts, standardize the procedures for the allocation and use of funds, strengthen daily monitoring, and dynamically carry out capital risk assessment and stress testing. Strictly carry out the procedures for examination and approval of margin increase. Financial derivative business shall not be carried out in personal account (or personal name).

(6) The risk management department shall establish a daily reporting system; The risk management department, the trading department and the financial department should check monthly; The risk management department and the trading department shall report the business development to the management every quarter.

All central enterprises should establish and improve the audit and supervision system of financial derivative business, improve the supervision mechanism, strengthen supervision and inspection, improve the quality of supervision, and give full play to the function of audit and supervision.

(1) The centralized management department of the Group shall select some enterprises or businesses to carry out special supervision and inspection every quarter, focusing on business compliance, whether there are illegal operations such as exceeding varieties, scales, deadlines and authorizations, and whether there is a risk of significant losses.

(II) The internal audit department of the Group shall audit all operating entities every year, focusing on the soundness and effectiveness of the business system and the authenticity of accounting.

(III) Report the problems found in the audit inspection to the Group in time and urge the rectification in place. For those who engage in speculative business or have significant loss risks, major legal disputes and serious impacts, they should be dealt with in a timely manner, and the operating entity should be suspended from conducting financial derivative business and be held accountable for rectification. The resumption of business needs to be reported to the board of directors of the group for approval.

(4) A system of accountability shall be formulated in accordance with the Implementation Measures for the Accountability of Illegal Investment of Central Enterprises (Trial) (Order No.37 of the State-owned Assets Supervision and Administration Commission) and other relevant provisions, so as to pursue the accountability of illegal matters. Questions and clues suspected of violating discipline or duties are transferred to the discipline inspection and supervision institutions. Questions and clues about suspected crimes shall be transferred to state supervisory organs or judicial organs. For the occurrence of major loss risks and serious impacts, the SASAC will deduct points or downgrade in the performance appraisal, and carry out accountability according to the cadre management authority.

All central enterprises shall regularly report the development of financial derivative business to the SASAC, and timely report major issues to ensure the accuracy and completeness of the information submitted.

(1) For the daily business development, the financial derivative business statement shall be submitted together with the financial express at the end of each quarter. Enterprises that have not carried out financial derivative business should make "zero declaration". The Group should strengthen the inspection and verification of reported data to avoid concealment, omission and misstatement.

(II) For the annual operation of the business, the Group shall submit a special report to the SASAC, including the annual business development (such as business types, hedging scale, profit and loss, risk assessment of positions held at the end of the year, etc.), hedging effect evaluation, problems found in audit inspection and rectification, and other major issues, and submit the special audit opinions issued by intermediaries to the SASAC together with the annual financial final report.

(three) for the development of speculative business or the risk of major losses, major legal disputes, resulting in serious impact, it should be reported to the SASAC within 24 hours, and the weekly report system should be established for the treatment measures and treatment. If there are special business needs, the term and scale exceed this notice, it should be reported to the SASAC in advance.

(four) for concealment, omission, misstatement and failure to report in time as required, the SASAC will inform and interview. SASAC will seriously hold accountable those who report information that is seriously inaccurate, conceal asset losses and fail to cooperate with supervision.

The SASAC will work with the Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce, the People’s Bank of China, China Banking and Insurance Regulatory Commission, the CSRC, the foreign exchange bureau and other relevant departments to form a joint force of supervision and strengthen supervision through regular consultation, information sharing and joint inspection. The foreign exchange quota required by enterprises to carry out overseas financial derivative business shall be handled in accordance with relevant regulations and procedures.

Licensed financial institutions such as banks, futures, insurance, securities, etc. shall strictly abide by the relevant provisions of the regulatory authorities when conducting financial derivative business. The SASAC of all provinces, autonomous regions, municipalities directly under the Central Government, cities under separate state planning and Xinjiang Production and Construction Corps may carry out the supervision of financial derivatives business in this region with reference to this notice.

The Notice on Further Strengthening the Supervision of Financial Derivatives of Central Enterprises (No.19 [2009] of the State-owned Assets Supervision and Administration Commission), the Notice on Establishing a Temporary Supervision Mechanism of Financial Derivatives of Central Enterprises (No.187 [2010] of the State-owned Assets Supervision and Administration Commission) and the Notice on Cancelling the Approval of Overseas Commodity Derivatives of Central Enterprises (No.42 [2015] of the State-owned Assets Supervision and Administration Commission) shall be abolished as of the date of issuance of this notice.

State owned assets supervision and administration commission

January 13, 2020

What is a "blockchain"? Can it make me make money quickly? With such curiosity and doubts, many people’s money gathered in the wind and eventually became a bubble. Zhang and Zhai, who were accepted by the People’s Procuratorate of Chang ‘an District, organized and led pyramid schemes. The suspects used the guise of "blockchain" to attract participants to obtain qualifications and develop their subordinates by purchasing "blockchain" on the grounds of investment. In just a few months, 9 floors were developed, more than 200 members were developed, and the loss was more than 9 million yuan.

1. A new scam-you can’t miss the slogan of "blockchain"

"If you miss Bitcoin, you can’t miss the blockchain project again. If you don’t have a pool of funds, you can make a profit of 10% of the investment in one week. This is safer than the bank. If you don’t start, it will be too late." One day in June 2019, Zou found a new investment project called "Golden Constellation" while chatting with his friend Wang. Wang’s introduction made him very excited and could not help but be tempted. Zou downloaded the APP on his mobile phone and became a "registered member". According to the regulations, Zou bought the virtual item "Constellation" at the current price, and then sold the "Constellation" at a high price through the trading objects randomly matched by the system in a cycle of 7 days. Not long after, Zou found that the balance on his APP rose rapidly. Click to withdraw cash, and tens of thousands of accounts were easily received.

2. Layers of development-the traditional "pulling people’s heads" way of "new wine in old bottles"

Zhai, who made a profit, was overjoyed, but how can he make more and faster profits? To this end, "Golden Constellation" launched a reward mechanism, that is, developing their own offline members through promotion codes will get 3%-5% of team members’ rewards. In order to increase the proportion of team rewards, Zhai found Zhang, who is doing Internet business, and quickly developed it into his own downline. Zhang took advantage of his own advantages, set up an office with other members, and founded the "Golden Constellation" business school in the name of investment and financial management and internet plus project. He promoted the "Golden Constellation" APP by holding sharing meetings, speeches and video and voice propaganda in WeChat groups for many times, and gradually became the leader of the "Golden Constellation" Shijiazhuang region with high income as bait.

3. It’s a mirage-"pyramid" pyramid scheme finally collapsed.

With the increase of offline members and the increase of transaction rate, the transaction amount of "Constellation" is gradually rising, which leads to the new members of the platform being discouraged. Without the addition of fresh blood, assets are snowballing, and market players simply cannot solve such a huge capital turnover. In order to expand the scale, the platform was upgraded to the blockchain mode of "Mine Exchange" again in an attempt to attract investment with higher returns. However, the good times did not last long. In October 2020, the platform collapsed completely, and members were unable to withdraw cash. The loss amounted to more than 9 million yuan, and the pyramid schemes of Zhai and Zhang were forced to terminate. In December 2022, Chang ‘an District People’s Court sentenced Zhang and others to prison terms ranging from three years and four months to four years and ten months for organizing and leading pyramid schemes. In February, 2023, the People’s Procuratorate of Chang ‘an District sued the co-suspect Zhai Mou to the People’s Court of Chang ‘an District for organizing and leading pyramid selling activities.

4. Penetrating the fog-be alert to the "blockchain" scam behind high returns

The essence of "Golden Constellation" is a Ponzi scheme, which is a variant of pyramid scheme and runs in the form of mutual help pyramid scheme. This scam attracts investors with a high rate of return, emphasizing that "investment must earn and there is no loss", but it avoids talking about the risks of investment. As the support of Constellation trading, the Exchange is developed by the platform itself, with the purpose of turning all assets into virtual currencies such as "air currency" and "pyramid scheme currency", which are not bound to anything of value and are full of security loopholes, black-box operations and insider trading. And under the seemingly profiteering reward policy, its essence is nothing more than pulling new players to fill the huge pit of assets. When the assets cannot be filled, it is the time when the model collapses and collapses.