Vaxx Attax: Deaths Soar 40pc Post-Pandemic

The Center Square: Indiana life insurance CEO says deaths are up 40% among people ages 18-64

“And what we saw just in third quarter, we’re seeing it continue into fourth quarter, is that death rates are up 40% over what they were pre-pandemic,” he said.

“Just to give you an idea of how bad that is, a three-sigma or a one-in-200-year catastrophe would be 10% increase over pre-pandemic,” he said. “So 40% is just unheard of.”

Davison was one of several business leaders who spoke during the virtual news conference on Dec. 30 that was organized by the Indiana Chamber of Commerce.

Most of the claims for deaths being filed are not classified as COVID-19 deaths, Davison said.

“What the data is showing to us is that the deaths that are being reported as COVID deaths greatly understate the actual death losses among working-age people from the pandemic. It may not all be COVID on their death certificate, but deaths are up just huge, huge numbers.”

There's a strong possibility that the lockdowns and vaccination campaign will end up causing far more life-year loss than the virus itself, if not more total deaths. The response by governments, pharma, scientists, media and the medical community ranges from corrupt to negligent, from criminal to homicidal.

H/T: Vaccine Slaughter

ShenWan: China Wants Foreign Companies to Issue A-Shares

The merger of bank and insurance regulators shifts regulation from institutions to the market according to Shenwan's chief economist.

iFeng: 申银万国杨成长：“银保合并”是从管机构转变为管市场

According to Yang Geng, member of the National Committee of the Chinese People's Political Consultative Conference and chief economist of the Shenwan Hongyuan Securities Research Institute, there are five major characteristics of the State Council’s institutional reforms. Behind the “mergers and bankers merger” is the shift from financial supervision to controlling the market from the past. Separate operations, separate supervision, and the development of combined supervision and unified supervision.

At the same time, the reform plan also proposes to reform the state taxation and taxation management system and merge provincial and provincial taxation and land taxation agencies. Yang Geng said that merging the national tax and the local tax will increase the efficiency of taxation, and at the same time reduce some aspects of corporate taxation, which is conducive to the efficient and orderly administration of tax collection, and local integration.

Referring to the recent hot-selling "China Securities Exchange," he believes that this is a good thing for improving the A-share market structure and allowing domestic investors to understand the enterprise more clearly and is also an inevitable choice for enterprises.

The article goes into some detail. One interesting item: China wants foreign companies to list domestically:

Third, from a development perspective, we welcome overseas listed high-quality companies to return to the A-share market. This has two effects on the A-share market:

First, change the industrial structure of listed companies in the A-share market. China’s economic growth is undergoing a transformation. The role of the new economy, new business models, new models, technology-based companies, and Internet companies is increasing. However, at the current market value of listed companies, traditional industries still account for a major proportion, including banks, real estate, and steel. Coal and so on. Therefore, speaking from the perspective of market value ratio, it cannot fully reflect and represent changes in the industrial structure of listed companies, and it will also affect the effectiveness of market structure. After they returned, the proportion of the new economy, new forms of business, and new technologies increased, and the A-share market could play a better role.

In addition, the international market has pricing in foreign countries. “Return A” will accelerate the valuation of China’s science and technology, new internet companies and international standards, and promote the domestic market’s investment valuation concepts in the new economy, new business models, and new technology markets. The perfection of investment methods.

Background on the regulator merger:

FT: China to merge banking, insurance regulators

Reuters: Exclusive: China's regulators compete to look tough as political pressure mounts

Anbang Seized Early in Deleveraging Effort

Anbang down.

Bloomberg: China Regulator Seizes Anbang, Chairman Faces Fraud Prosecution

It’s a remarkable turn for Anbang, which burst onto the global scene in 2014 with the purchase of New York’s Waldorf Astoria hotel and only a year ago was in talks to invest in a company owned by the family of Jared Kushner, U.S. President Donald Trump’s son-in-law and senior adviser. With 2 trillion yuan ($315 billion) of assets, Anbang represents China’s largest-ever takeover of a privately owned company.

...The surprise move furthers President Xi Jinping’s anti-corruption and de-leveraging campaigns while providing a government backstop for the high-yield investment products that Anbang sold to hordes of Chinese citizens.

The cost of the bailout depends on the value of the underlying assets. If those asset prices start sinking, the Chinese central bank will be called on to make up the difference.

The takeover may end in a year if asset disposals are completed, strategic shareholders have injected capital and the company is stable. Government control can be extended by as much as another year if needed, but Anbang will ultimately remain a private company.

Anbang grew by borrowing short and investing long:

Much of Anbang’s growth was tied to sales of short-term, high-yield products that the company used to fund purchases of long-term assets such as real estate -- creating a duration mismatch that worried analysts and regulators. One of its products, called Anbang Longevity Sure Win No. 1, boosted its premiums almost 40-fold in 2014 by offering some of the juiciest yields in the industry.

Maybe this is a coincidence, maybe not:

This isn’t the first time Chinese regulators have had to step in when an insurer ended up in trouble. In 2007, the government tapped an industry protection fund to take control of New China Life Insurance Co. by buying a major stake in the insurer, after its former chairman Guan Guoliang misused funds.

ZH: How An Anbang Default Could Rock The Market: Wall Street Explains

I guess the NYC Landmark signal still works. Anbang goes wobbly just a few short years after its splashy purchase of a trophy Manhattan property, the Waldorf-Astoria Hotel. It brings to mind the Japanese real-estate bubble in the late 80s, and one has to wonder whether China will suffer the same retreat eventually.

When HNA needed a bailout, UBS wrote:

A default scenario would increase funding costs for high-yield issuers, mainly Chinese property companies and LGFVs, and could push out spreads on junk bonds in the region by 160-240 basis points, according to a Feb. 6 equity strategy note

Contagion need not be falling dominoes, rather the rising cost of credit eventually causes widespread defaults.

China managed to contain smaller defaults in prior years, but the numbers keeps getting larger. It has strict capital controls in place because it cannot otherwise stop capital outflows. It is less than a year into deleveraging efforts, efforts that accelerated following the October 2017 National Congress.

There are no free lunches. Losses can be shifted, they can be papered over, they can be hidden, but they cannot be eliminated. As always, the most likely place China's mistakes will compile is on the central bank's balance sheet.

Ponzi Popping: Anbang WMP Sales Plummet 88pc

Anbang was one of the companies aggressively using the "borrow short, buy long" strategy of funding acquisitions with short-term insurance policy premiums. Now its cash flow has evaporated and the banks are rightly refusing to play musical chairs after the government turned the music off.
Bloomberg: Anbang's Woes Deepen as Banks Are Told to Halt Dealings

Pressure is building on Anbang Insurance Group Co. as Chinese banks distance themselves from the owner of New York’s Waldorf Astoria hotel amid a wide-ranging government probe that landed Chairman Wu Xiaohui in police custody.

Chinese authorities have asked lenders to suspend some business dealings with the insurer, according to a person with knowledge of the matter, who didn’t provide further details. At least six large banks have stopped selling Anbang policies at their branch networks, with some taking action before the government notice, people with knowledge of their operations said.

NYTimes: Anbang’s Sales Dry Up in New Challenge for Chinese Insurers

Anbang’s sales of life insurance policies and investment products, an important source of cash, stopped almost completely in April after tumbling sharply in March, according to Chinese government data released on Thursday. Across the insurance industry, sales slowed in April compared with earlier in the year.

The weakness follows the government’s crackdown on a sector that is supposed to help families and companies cut their financial risks, but has recently become a hub for rampant financial speculation.

...Anbang is now under acute pressure. Its revenue from existing life insurance policies and certain wealth management products was down 88 percent in April compared with the same month the previous year. The rest of the industry was up 4.5 percent in the same period.

Flashback to one month ago: Pop Goes the Ponzi: Rumors Foresea Life Insurance In Trouble

A leaked document circulating on the Chinese Internet shows one of China's most aggressive sellers of universal life insurance is in trouble. Foresea Life was selling policies like hotcakes in order to fund parent Baoneng's takeover attempt of Vanke. The chairman of Baoneng was banned from the insurance industry for 10 years, and now the insurance division might be facing a Ponzi-collapse if it cannot sell enough new policies to meet the cash demand from a ballooning amount of surrendered policies. Last year, policies surrendered totaled 9 billion, an increase of 5.2 times. This year, the 2017 estimated surrender value (estimated by Foresea) is 60 billion, an increase of 6.7 times.

Anbang was also an aggressive seller of these policies, using them to fund acquisitions.

Anbang’s premiums from investment products reached 186.9 billion yuan, a 271 per cent year rise on the previous year. Evergrande Life Insurance’s investment premiums swelled 705 per cent to 23 billion yuan while that for Qianhai Life surged 228 per cent to 50.1 billion yuan, according to calculation by SWS Research.

If insurers use cash collected from universal life products to buy shares in listed companies, they have to issue the products continuously to maintain cash levels, because many buyers surrender them within three years, Li from CMS said.

Pop Goes the Ponzi: Rumors Foresea Life Insurance In Trouble

A leaked document circulating on the Chinese Internet shows one of China's most aggressive sellers of universal life insurance is in trouble. Foresea Life was selling policies like hotcakes in order to fund parent Baoneng's takeover attempt of Vanke. The chairman of Baoneng was banned from the insurance industry for 10 years, and now the insurance division might be facing a Ponzi-collapse if it cannot sell enough new policies to meet the cash demand from a ballooning amount of surrendered policies. Last year, policies surrendered totaled 9 billion, an increase of 5.2 times. This year, the 2017 estimated surrender value (estimated by Foresea) is 60 billion, an increase of 6.7 times.

Some background, from September 2016, Barron's: China Cracks Down On High-Yield Life Insurance Policies

Hong Kong-listed Chinese insurers soared after the China Insurance Regulatory Commission put the brakes on high-return life insurance policies, essentially short-term wealth management products.

Universal life insurance is one such policy, commonly offering 5-6% annual return. Players like Evergrande Life even offer 8%.

And such policies have been funding unlisted insurers to buy mainland China's A-shares. Qianhai Life Insurance of Baoneng Group has been issuing these "life insurance" policies to fund its purchase of China Vanke's (200002.China) shares.

September 2016, SCMP: Unlisted insurers to be hit hard by clampdown on flexible, but ‘risky’, universal life products

Anbang’s premiums from investment products reached 186.9 billion yuan, a 271 per cent year rise on the previous year. Evergrande Life Insurance’s investment premiums swelled 705 per cent to 23 billion yuan while that for Qianhai Life surged 228 per cent to 50.1 billion yuan, according to calculation by SWS Research.

If insurers use cash collected from universal life products to buy shares in listed companies, they have to issue the products continuously to maintain cash levels, because many buyers surrender them within three years, Li from CMS said.

February 2017, FT: China bans fourth-richest man from insurance sector for 10 years

China’s fourth-richest man has been banned from the country’s insurance industry for 10 years, in the most aggressive move yet by regulators to tame borrowing and hostile corporate takeovers by insurers.

Yao Zhenhua, chairman of financial conglomerate Baoneng Group, last year launched a high-profile raid on China Vanke, the country’s largest residential developer. He acquired a stake worth 25 per cent, prompting Vanke’s chairman to label Baoneng “barbarians”. 

Much of the funding for Baoneng’s Vanke stake and other investments came from policies sold by its life insurance unit, Foresea Life Insurance, which Mr Yao also chairs.

December 2016, Reuters: China suspends Foresea Life from selling "universal life" insurance

Today, Reuters: China insurer Foresea Life says operations normal, cashflow stable

Local Chinese media and Britain's Financial Times, citing a letter sent from Foresea Life to China's insurance regulator, said the insurer may be unable to meet payouts if it was unable to sell new products.

The letter from Foresea Life, dated April 28, requested the China Insurance Regulatory Commission (CIRC) to resume new product approvals to "avoid inciting mass incidents by clients and localise and systemic risks", the Financial Times said.

Foresea Life had been aggressively wresting market share from bigger, listed peers by offering investors guaranteed-return, higher yielding products.

Today, FT: Chinese insurer warns of defaults as ban on new products bites

One of China’s largest insurers has warned of mass defaults and social unrest unless the regulator lifts a ban on its issuance of new products, the latest sign of stress in the industry caused by a crackdown on financial risk.

In a letter to China’s insurance regulator seen by the Financial Times, Foresea Life Insurance warns that the company expects Rmb60bn ($8.7bn) in redemptions this year and might be unable to meet payouts unless it is able to sell new products.

In December, the China Insurance Regulatory Commission banned Foresea for three months from applying to sell new products. In February, the agency banned Foresea chairman Yao Zhenhua, China’s fourth-richest man, from the industry for 10 years.

In the letter dated April 28, Foresea asks the CIRC to resume new product approvals “in order to avoid inciting mass incidents by clients and localised and systemic risks, producing greater damage to the industry”. The term “mass incidents” is commonly used in China to describe demonstrations, protests and riots.

iFeng: 前海人寿被传陷“600亿退保”危情 回应称经营正常

Recently, screenshots of documents relating to Qianhai cash flow and surrender pressure spread on the Internet, including the "Shenzhen Insurance Regulatory Bureau recommended paying attention to Qianhai cash flow risk", "on the request to support the normal operation of Qianhai and related matters Of the report" and so on.

The above mentioned documents, Qianhai, said, "In 2017 our company is expected to have 60 billion yuan in surrendered policies," and asked the CIRC within a certain amount of sales within the scope of the resumption of universal business sales and new product declaration. In addition, the document also pointed out that the Qianhai risk of cash flow, the first quarter of this year, the company's cash inflows substantially reduced. However, the authenticity of the above documents, the reporter did not from the CIRC and Qianhai to be confirmed.

According to the iFeng article, 78 percent of Foresea's (Qianhai in pinyin) premiums came from sales of universal life policies back in 2015. It saw 60 billion in investment inflows thanks to those policies. Business has since slowed, although some don't see a big risk.

After the suspension of the Universal Insurance business, according to the recently released data, the former life insurance in the first quarter of 2017, the original insurance premium income of 13.48 billion yuan, compared with 11.89 billion yuan in 2016 increased, while the new investment To 46.78 million yuan, compared with 33.46 billion yuan last year.

According to the solvency report, at the end of the first quarter of 2017, the net cash flow of Qianhai Life was -12.4 billion yuan, the consolidated current ratio was 198% in one year and the liquidity coverage rate was 257%. At the end of the first quarter of 2016, the net cash flow was 8 billion yuan.

People close to Qianhai said that the 2016 annual report shows that as of the end of the year, Qianhai had cash and cash equivalents balance of 43.66 billion yuan, plus the first quarter of 2017 scale premium income of 13.5 billion yuan, Qianhai to achieve annual cash net inflow is not stressful.

Assuming the document is real, we now know why regulators and the central bank suddenly eased their stance on deleveraging last week. The problem is that, as Mises said so many years ago:

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

In the end, the yuan will pay the price.

Anbang Banned for Three Months

Reuters: China's insurance regulator bans Anbang Life for three months

China's Anbang Life Insurance Co was punished by the country's insurance regulator which on Friday barred the firm from applying to issue new products for three months, the latest move in an industry-wide crackdown.

Anbang Life, a key part of Anbang Insurance Group Co [ANBANG.UL], was cited for "disrupting market order" by designing a product that bypassed regulations aimed at curbing growth of short-term, risky universal life insurance products, the China Insurance Regulatory Commission (CIRC) said in an online public notice.

CIRC's move against Anbang Life comes during a widespread regulatory crackdown on what is seen as the excessive use of universal life products by some insurers, and as China's central leadership moves to curb risk in the financial system.

Basically, Anbang and other insurers are engaged in maturity mismatch:

Anbang Life intentionally designed a long-term annuity insurance product as a two-year product, circumventing rules, CIRC said in Friday's notice.

iFeng: 安邦人寿遭处罚！3个月禁止申报新产品 处罚有多重

The so-called "long insurance short to do", in recent years, some of the insurance companies to quickly obtain the scale of insurance practice. Simply put, that is, the protection of a long period of time (more than a decade) of insurance products, through the rapid return of premiums, given the consumer to determine the benefits, making the vast majority of consumers purchase products in the policy guarantee period is not yet reached Go to surrender. Thus, long-term short-term insurance products, the actual survival period will not reach the protection period so long, often less than five years, many in less than three years.

And with the traditional sense of the insurance surrender is different from the surrender of this product for consumers, there will be no loss, but there will be gains. And for insurance companies, the consumer's surrender is often expected, because to a certain extent, the consumer's surrender is exactly what the insurance company's product design dictates.

Objectively speaking, these products have both security and financial investment functions, with stable income, high transparency, misleading sales and other characteristics, but the individual companies in the development of short-term product is more radical, the product shorter and shorter, "Short money long cast" situation, there are "asset-liability mismatch" and "cash flow" two potential risks. Therefore, the CIRC issued in March 2016 "China Insurance Regulatory Commission on the specification of short-term life insurance products related to the notice" (Bao Jian Fa [2016] No. 22), to guide the industry to adjust the business structure, the development of long-term savings And risk-based business, and strengthen the risk of two major risks of the control.

Rumor: Insurance Regulator Under Investigation

SCMP: What’s in the short leash on China’s insurers – risk or politics?

Xiang has not appeared in public since the annual insurance conference in mid January where he pledged to rein in the wild behaviour of China’s insurance money.

With the blessing of former premier Wen Jiabao, the ex-auditor and central banker landed the top job at the China Insurance Regulatory Commission in 2011.

He is in charge of granting life insurance licences, or virtual cash machines, or money printers as insiders call them.

In the first 11 months of 2016, China’s life insurers sucked in more than 1.1 trillion yuan of insurance premium, with investment schemes containing minimal insurance elements.

...Front line salespeople typically promise their policyholders a guaranteed rate of return of over 6 per cent, double the prevailing bank deposit rate. Insurance companies are taking deposits from the public, without submitting to the regulatory restrictions and operating costs of a bank.

Much of the money will be used to serve the insurers’ owners, for buying equities that owners are hoping to jack up, or investing in the owners themselves as trust products.

Not surprisingly, the queue for an insurer’s licence is long, growing to more than 100.

SCMP: Cross hairs are on insurers as China takes aim at raiders

China’s insurers are getting cross hairs on their backs, as financial regulators take aim at corporate raiders who use insurance premiums collected from policyholders to finance their takeovers and equity investments.
Insurers should “reflect on their faults,” manage their funds with greater care, said Chen Wenhui, vice chairman of the China Insurance Regulatory Commission (CIRC) in Beijing on Thursday, during an annual conference with insurance companies nationwide .
Some insurers have been “reckless” with their investments, by making highly leveraged hostile takeovers, or leading outsize acquisitions overseas far beyond their core business, Chen said.

China Health Insurance Market Expected to Quintuple by 2020

China News: 报告：到2020年中国商业医疗保险市场规模将飙升四倍

Boston Consulting Group (BCG) and Munich Reinsurance Company August 24 jointly issued in Beijing, "the advent of commercial health insurance, insurance firms need to establish six ability" that the middle class in and rich people to actively seek alternatives to public health care, driven by 2020, the scale of China's commercial health insurance market will grow nearly fourfold, from 241 billion yuan in 2015 increased to 1.1 trillion yuan.

Summary: Private Health Insurance in China Will Surge Fivefold to RMB 1.1 Trillion by 2020, Study Finds

Report: Opportunities Open Up in Chinese Private Health Insurance

Related: Chinese Insurance Companies Salivating At Chance to Implement US Healthcare System

Chinese Insurance Companies Salivating At Chance to Implement US Healthcare System

The lead in this Economic Observer article on health insurance:

Although the health insurance market annual growth rate of 40%, but mostly at a loss. Why are health insurance companies eager to enter the market?

This conference, Qinghai Provincial Party Committee deputy secretary-general, provincial health reform office director Hou Pengning that year to comprehensively implement the basic medical insurance of commercial insurance services in the province. The precise manner in the basic medical insurance, handling, audits, claims and other content all by commercial insurance companies operate.

Qinghai initiatives still national precedent.

The move to the National Health and Family Planning Commission announced the launch mode, the industry has been interpreted as "management departments interested in promoting commercial insurance process."

The industry believes that the pilot Qinghai, if successful, will have a significant impact on the basic health care system, and even insiders bold assumptions, China's future payment or security system will be similar to the United States, the basic medical insurance holding less than 30%, the remaining 70 % of all commercial insurance. "This market space is very large, the first to enter, who will have more say in the future," Xu speed Shanghai Medical Reform Office, deputy director, said, "With the deepening medical reform, and now to the commercial insurance into the basic medical service market golden moment. "

Insurance market forecast and the medical profession is that by 2020 the national health insurance market space will reach 2 trillion yuan of scale. Last year, the national health insurance market size between 150 billion yuan to 160 billion yuan this year, nearly 200 billion yuan.

The U.S. market is a disaster because of third-party payments, demographics, and a lack of actual insurance. In China, health insurance still tends to be more like actual insurance. You can get catastrophic coverage in China and unless you're going to die, the insurance company doesn't pay out. Things like broken legs, kidney stones, probably a stab wound if it hit nothing vital. Whereas in the U.S., the medical industry and government are in cahoots to drive up spending.

It is reported that recently received professional health insurance licenses of three companies, namely Fosun UnitedHealth Group, a subsidiary of Tencent Senate vote and Beijing and the Thai Life Insurance industrial park led love life.

Starting in 2014, keen sense of smell began to get involved in professional health insurance market, Fosun is just one of them. According to the insurance industry sources, the current submission CIRC hopes to establish a professional health insurance company's application for a license has more than 50 sheets. However, the CIRC sources said, may eventually not issue so many licenses, but the market boom is set off.

Currently, most insurance companies for property insurance business in China, life insurance, pension insurance, and only 5 for professional health insurance company. This five professional health insurance companies are: PICC, Kunlun, harmony, peace, CPIC and the Allianz insurance company. China's insurance market share, a company specializing in health insurance services accounted for only 10%, and the remaining 90% comes from property insurance and life insurance.

In those now actively applying for a license of professional health insurance companies, the biggest bright spot is a cross-industry alliance are frequent, such as software and entrepreneurial spirit Kang Pharmaceutical, Sunshine Insurance Group and a combination of Neusoft. Insurance industry analysis, this pattern will lead to the birth in China as a large insurance group company.

This upsurge is reminiscent of the evolution of the US insurance market, and the brightest of capital eager to see the outside world seems to be the prototype of United Health Group.

United Health Group, founded in 1974, is located in Minnesota's Min-netonka, UnitedHealthcare and Optum is divided into two business segments. Optum as an extension of insurance, mainly by health management companies (OptumHealth), health information technology services company (OptumInsight) and pharmacy benefit management companies (OptumRX) three subsidiaries.

There's a risk that China could follow in America's disastrous footsteps given how the insurers want to see the market develop:

However, the current national health insurance situation, although the health insurance market, with 40% annual growth rate, but mostly at a loss. According to industry people said, Ping Pong and have failed to achieve profitability in this area.

So why are companies eager to enter the health insurance market?

Taikang Life Insurance, a person on the Economic Observer said: "Because the industry is expected to China in 2020, health insurance premiums will quickly heavy volume, will scale to 2 trillion yuan."

The industry brought the underlying market is still the United States, in this market, only 30% of the basic medical insurance covered veterans and poor people. The remaining 70% are commercial insurance. The current situation in China and the United States is just the opposite. "But we expect the future of China's basic medical insurance will not exceed 30%, 70% will be converted to commercial health insurance forms. So the future is definitely the number one trillion space." An insurance source said.

This market space is a huge temptation. The US insurance company's operations and profit model like a carrot in front of a goat, and stimulate the imagination of Chinese industry's largest. "Chinese health insurance premiums currently only 8% of the total, while the US is 40% the size of the US health insurance premium of 1.68 million dollars, the German health insurance premium per capita has more than $ 3,000, and we only 116 dollars per capita level of last year's national health the total cost of more than 4 trillion, but the insurance claim amount of 500 million, while financing the health industry is also low, "Xu speed deputy director of Shanghai Medical reform Office believes that" our future development potential is enormous. "

Some analysts think the American-style system isn't coming to China though:

However, the future of the country in the end can occur several professional health insurers are not yet known. Industry sources also pour cold water on the enthusiasm of all kinds of capital that China will eventually not take the American model, although this stage of development the United States there are some similarities, the Chinese government will reference the American model, but because of the way policymakers pay Unlike the United States, so the future may be in macro-economic control led to the semi-market-oriented approach to promotion execution.

EO: 中国医疗保障体系将迎来巨变 ！50多家机构等待健康险牌照

Financial Work Group Postpones Meeting Again, Reform Challenges Too Great

iFeng: 中央金融工作会议推迟至9月以后 或因改革难度太大

August 2, the NDRC issued a message reveals, the fifth national financial work conference will again be postponed until after September. Central Financial Work Conference because this is considered officially promote regulatory reform and widespread concern by the market, and now the meeting repeatedly postponed, analysts generally believe that, or because of the difficulty of reform is too large.

...Current financial risks and challenges China is facing increasing, and the drawbacks of the financial regulatory system is gradually revealed, the central regulatory frameworks need to promote financial reform and guard against financial risks and maintain the new era of the financial industry and stable development.

...About the current financial regulatory reform, more controversy has five programs, namely:

The first scenario: the upcoming "Three committees" incorporated into the central bank, the central bank to take super mode;

The second option: "line of the First Committee" program, soon to be "three committees" merged Integrated Financial Supervision Commission, thereby forming a "double regulation" mode;

The third program: "line two sessions" program, will the central bank and China Banking Regulatory Commission mergers, CSRC and CIRC preserve the existing situation remains unchanged;

The fourth option: "line of three" program, soon to be "line 3 will be" merged super financial regulatory bodies, the establishment of the Banking, Insurance Regulatory Commission and China Securities Regulatory Commission at the central bank;

The fifth program: the establishment of infrastructure in the current financial regulatory framework "Financial Stability Board", the Consumer Financial Protection Agency singled out, in order to strengthen financial consumer protection.

Disney Shouldn't Have Come to China

FINTS Headlines:

Dalian Wanda sets eyes upon confronting Disney

“Disney really shouldn’t have come to China,” Wang said on state mouthpiece CCTV when he was invited as a guest for a TV show recently, arguing that the foreign theme park would be unable to make a profit in China over the next 10 to 20 years.

Shanghai Stock Exchange to standardize M&A

According to statistics, the average appreciation rates of valuation on restructured companies in the A-share market between 2012 and 2015 are rated at 201%, 515%, 527% and 737% respectively, showing an upward tendency year on year. Furthermore, the figure between early 2016 to mid-May even reached 1,334%.

China cracks down on illegal overseas insurance products

The China Insurance Regulatory Commission urged in an official document, as cited by major domestic media on May 23, that watchdogs should rigidly tackle existing illegal sales of overseas insurance products across the nation, which has already given rise to a series of illegal issues covering several aspects. The request stems from potential threats of illegal cross-border capital flows, as well as to maintain the rigor and stability of the domestic financial market.

...Tightening rules on insurance sales would also help control illegal capital outflows, as some use outbound capital transfer to hide their illegal assets or incomes through buying overseas insurance products.

Currency Restrictions Target HK Insurance Market

Bloomberg: China Tightens Restrictions on Insurance Purchases in Hong Kong

China is tightening restrictions on the use of third-party payment providers to buy insurance products in Hong Kong as authorities move to stem outflows of the yuan.

Starting March 12, the People’s Bank of China will prohibit the use of electronic payment services by mainland individuals for any life insurance and investment-related products, according to notices sent by insurers to their agents that were seen by Bloomberg. Individuals can still use those payment systems for insurance on personal accidents, medical and transportation, with a transaction and policy cap of 30,000 yuan ($4,600), the notices showed.

Chinese Insurer Told to Stop Buying Stocks By Regulator

A new chill has hit the A-share market: an insurer was told to halt equity investments due to its weak repayment ability.

Besides signs of tightening liquidity, analysts said stocks tumbled amid concern recent gains weren’t justified by fundamentals and policymakers may introduce policies to restrain housing-price gains in some of the nation’s largest cities. Losses accelerated in the afternoon after regulators banned Zhongrong Life Insurance Co. from adding to its equity investments.

iFeng has the story: 中融人寿炒股被叫停 保监会主席：险资整体风险可控

In the opinion of investors, insurance companies are rich and powerful gold master, who said the win put who scored. But February 25 CIRC supervision of a paper letter solvency problems due to make financial life ordered to stop increasing equity investments, an increase of one point letting market worries - the insurance company in the end is the true gold master, or a large turnip?

Faced with the market worried, CIRC Chairman Xiang Junbo has spoken, "We did repeatedly estimated the overall risk insurance funds overall control, and for some small insurance companies, we continue to conduct stress tests, basically no problem."

One of the factors driving the A-share bull market was buying by insurance companies. With talk of money flowing back into property as investors abandon stocks, news of an insurer being banned from buying stocks was most unwelcome.

according to the CIRC's stress test results, there are 18 qualified companies undergoing stress tests, most have passed, as for potential risks for individual companies, will take targeted regulatory measures.

China's Insurers Draw Regulator Attention

WSJ: China Regulators Seek to Cover Risks Posed by Aggressive Insurers

Analysts say Beijing is most concerned about the smaller companies, which are pitching investment products with promised annual returns as high as 8%, to savers who are frustrated with China’s volatile stock market and with low interest rates offered by bank savings accounts. China has cut interest rates six times since November last year, dropping deposit rates to 1.5% from 3%.

The regulators appear to have two main concerns. They worry that insurers, which need to boost their own returns to meet the promised high payouts, have been scooping up stocks, helping to drive the market to a one-month high and adding volatility. They are also uneasy about the products themselves, and the risk of a mismatch between the insurers’ investments and their promised payouts.

Last year, the concern was real estate and overstated assets. Another Insurance Company in Financial Trouble. This year stocks. Maybe next year bonds and currency?

Small Depositors to Be Insured Starting May 1

Deposit insurance is being rolled out just in time:

China to Insure Deposits in Move Toward Scrapping Rate Curbs

Deposits and interest up to 500,000 yuan ($81,000) will be fully covered, the State Council said in a statement on its website on Tuesday. Over that level, compensation would be according to the amount available from a bank’s liquidated assets, it said.

SCMP: China’s ICBC bank 2014 profits up 5 per cent, bad debt ratio climbs

Higher-than-expected provisions for bad loans, up by 48 per cent year-on-year, accounted partially for the decline in profit growth, analysts noted.

...The bank lost some control over bad debt. ICBC’s non-performing loan ratio rose to 1.13 per cent last year, from 1.06 at the end of September.

Banks in China see profit growth drop on surging bad loans

Chang said that in the economic transformation process, banks in China will continue to be affected by the rise in both non-performing loan (NPL) ratios and outstanding NPLs. "In the next few years, the banking industry's average NPL ratio will fluctuate at a higher range of 2% to 3%, compared to an average of 1.25% recorded by the industry in 2014," Chang added.

Last year, Agricultural Bank saw its outstanding NPLs reach a high of 37.2 billion yuan (US$6 billion) in 2014, translating into a NPL ratio of 1.54%, up 32 basis points from 2013. The bank, however, opined that its NPL ratio will become more stable this year due mainly to the government stepping up efforts to help enterprises with sustainable operations.

The growing risk exposures of bank assets have much to do with economic conditions, said Sun Deshun, vice president of CITIC Bank. The bank recorded outstanding NPLs of 28.454 billion yuan (US$4.6 billion) in 2014, for a NPL ratio of 1.30%, with massive write-offs for NPLs dragging down its net profit growth.

SCMP: China's biggest banks learn to cope with sluggish growth

Easing has been a doubled-edged sword for the banks. On the one hand, cheaper credit means they will make less money on their loans. Net interest margins stayed strong for most of the banks for last year as a whole but came under pressure in the last three months of the year as the rate cuts were priced into loans.

That pressure should increase as loans reprice this year. The central bank is expected to cut rates by another 25 basis points in the first half of the year.

At the same time, the easy money is good for asset quality - at least in the short run. The cheaper the credit, the easier it will be to refinance loans and keep struggling firms afloat for a while longer. This should help banks control bad debts this year.

The average non-performing loan ratio for commercial banks is 1.29 per cent.

Anbang Keeps Buying

Chinese insurer bags pricey Fifth Avenue trophy

The company is purchasing the office space at 717 Fifth Ave., a 26-story, roughly 350,000-square-foot office tower, from the Blackstone Group for an undisclosed sum. Anbang is not buying the property's roughly 110,000 square feet of ultra-valuable retail space in the deal.

China FX Reserves Ready To Run

The capital floodgates are opening as expectations of yuan depreciation set in. Chinese insurers have considered making large overseas investments before, but the rising yuan was a stumbling block since it would weigh on returns. This is still the very early stages of what could be a massive investment trend and outflow of Chinese capital. All of the residential property buying by wealthy Chinese in recent years will be a small blip compared to what could follow in the years ahead as insurers and other corporate investors pour into commercial real estate and other outbound investments.

Recently, some media reports, Sunshine Insurance will be more than the total price of insurance of $ 230 million acquisition of US Baccarat Manhattan hotel. It has been since 2015, at least a third of domestic insurance firms to invest overseas property news, and also the sun property insurance overseas acquisitions second quarter. Previously, Taikang Life and China Ping An are called, respectively, the London office and the office of investment.

It seems that real estate has become the most favored overseas investment insurance firms assets, why not? Under the supervision of a clear policy and exchange rate environment with conditions, industry sources said, the real estate with large-scale, long duration, stable earnings, investment management simple and easy to copy and other characteristics, in line with the investment needs of the insurance funds.

....China Insurance Regulatory Commission Vice Chairman Chen Wenhui late last year on overseas investment related forums has said that overseas investment insurance agency, as the insurance industry "going out" one of several forms, is only just beginning. Which also includes investments in overseas real estate. Since 2013 China Ping An acquisition of British Lloyd's of London building only started after another insurance company investing in overseas property news newspapers.

China Ping An Group's chief investment officer Tong Kai also said that, in fact, the insurance company itself has a huge demand for overseas investment. On the one hand, the long duration of the insurance company liabilities, some up to 20 years or even 30 years, but on the other hand, the short duration of domestic assets, the financial markets is not enough variety, therefore, domestic investment tend to have a maturity mismatch situation.

As for the last two years until the insurance company began intensive investment overseas real estate, Tong Kai think it depends on other regulatory policies and exchange rate factors.

...RMB exchange rate changes is a major risk factor affecting enterprises overseas investment decisions. Previously, the RMB appreciation rate is relatively high, from the perspective of insurance firms, will involve a huge amount of funds were single real estate investment there is a certain risk; that is, if the yuan appreciation of 5%, it means that overseas investment assets depreciate 5%, not consistent with the pursuit of prudent risk capital investment style. In recent years, expectations for rapid appreciation of the renminbi continued to weaken, insurance firms was gradually begin buying overseas assets.

iFeng: 人民币升值预期减弱 险企才敢买外国房子

Anbang Insurance Gobbles Up Assets

Anbang has been in the headlines for many weeks in China, partially due to its large investment in Minsheng bank, where president Mao Xiaofeng resigned in the face of corruption charges. However, it was already in the news because it's on a wild buying spree.

Some recent news from the company:

China's Anbang to buy stake in Tong Yang Life

China's Anbang Insurance Group Co has signed an initial agreement to buy a controlling stake in South Korea's Tong Yang Life Insurance for around 1.1 trillion won ($1.01 billion), a South Korean

China based insurance company buys Waldorf Astoria New York.

Anbang Insurance Group has become the new owner of the famous Waldorf Astoria, the landmark hotel on Park Avenue, New York, the company bought the asset from Hilton Worldwide Holdings Inc. for an eye-popping $1.95 billion.

China's Anbang Insurance raises stake in Minsheng Bank

Anbang raised its stake in China Minsheng Banking Corp Ltd to 19.28 percent last week, according to a disclosure published on Monday by the Hong Kong Stock Exchange.

...In December, the Beijing-based insurer raised its stake in Chinese property firm Financial Street Holdings Co to 20 percent, while increasing its shareholding in China Merchants Bank Co Ltd to 10 percent.

....Two months later [December], Dutch insurer Delta Lloyd NV agreed to sell its Belgian banking operations to Anbang for 219 million euros ($245.78 million).

Anbang was founded in 2004 by seven companies including state-owned Shanghai Automotive Industry Group Corp and Sinopec.

The company has received attention from English-language press this week:

The Economist: The big Anbang

Investors have faith in the firm: last year Anbang raised some 50 billion yuan ($8 billion) through two private financing rounds, quintupling its registered capital to 62 billion yuan—more than even PICC and China Life, the biggest state-owned insurers. It also has lots of cash in hand, thanks to a 38-fold increase in revenues from life-insurance premiums to 53 billion yuan in 2014. This has come at a price: Anbang has offered eye-watering yields of nearly 6% on some of its investment products. Yet in 2013 its return on equity was roughly 25%, thanks to good investments of its own.

Mr Wu’s ultimate goal, apparently, is to transform Anbang into a conglomerate, in which insurance sits alongside banking, securities and fund-management. Fawning descriptions in the Chinese media talk of a “Warren Buffett model”, whereby Anbang draws on steady income from insurance to fuel its ambitions. But margins are much thinner in China’s immature insurance market, making Anbang’s income hard to predict. And even Mr Buffett took a few decades to establish his empire.

In China: Southern Weekly apologizes to Anbang for 'false reporting'

The Guangzhou-based Southern Weekly's investigative report into the Beijing-based Anbang — which made headlines last year for winning the bid to buy New York's famed Waldorf Astoria hotel — claimed that Chen Xiaolu, the son of former foreign minister Chen Yi, has been the "real controller" of the company since its establishment in 2004.

The article also alleged that current group chair Wu Xiaohui was previously married to the granddaughter of former paramount leader Deng Xiaoping and hinted that these connections have helped open many lucrative doors for Anbang.

Chen Xiaolu was quoted in the report as denying holding any posts within the company. He also went on social media to reject the allegations the same day the article was released.

Southern Weekly's apology has sparked heated debate among Chinese internet users, many of whom believe there is a bigger story behind the incident and that the more the newspaper says sorry the more suspicious it looks. Others speculated that Anbang must have some very powerful backers to be able to force an adacious paper like the Southern Weekly — which made international headlines for daring to protest government censorship in early 2013 — issue an unequivocal public apology.

Netizens have pointed to Anbang's close links to "princelings" — the offspring of high-ranking Communist Party officials — including the aforementioned Chen, Wu and Zhu Yunlai, the son of former premier Zhu Rongji, who is said to be an independent director of the group.

What's Driving Insurer Anbang's Big Bang?

A January 29 report by Southern Weekend brought public attention to Wu's connections with prominent figures such as 68-year-old Chen Xiaolu, the son of a famous People's Liberation Army leader, the late general Chen Yi, considered one of the fathers of modern China. Other notable associates include Zhu Yunlai, a son of former Premier Zhu Rongji, and Long Yongtu, China's chief negotiator in talks that led to the country's membership in the World Trade Organization.

Southern Weekend reported that more than 51 percent of Anbang is held by three private companies in which Chen Xiaolu has invested. Anbang's business registration says Chen is one of nine directors on the company's board of directors.

On January 29, Chen said he does not own Anbang shares but that he does serve as a company consultant. He said he and Wu have been business partners for 15 years, and that he has never gotten directly involved in the insurance company's operations.

Chen said acknowledged , however, that he had recommended in a conversation with Wu that Anbang should invest in U.S. dollar-denominated assets because, in his view, China's economy is slowing and the U.S. economy is recovering.

...Players in the insurance industry say Anbang has scored more regulatory approvals in recent years than its rivals. Special victories of late included permission to start a fund management firm, a pension insurance company and life insurance offices in Shanxi and Anhui provinces, and the cities of Shanghai and Shenzhen.

A CIRC official said Anbang has won fast-track approval partly due to Wu's initiative. He often visits the commission's offices, the official said, and follows up on CIRC action quickly.

But warning flags have been raised in the industry over whether Anbang's recent investments have exceeded regulatory limits. Media reports and business records indicate Anbang signed about 16 billion yuan worth of overseas deals last year.

Another Insurance Company in Financial Trouble

Last month it was Dragon Life: 183% Becomes -87% and Dragon Life Is Suspended By Regulators.

The firm was inflating the value of its real estate assets and regulators found its capital surplus was a deficit.

The latest firm is Sinatay. The firm has been losing money for 5 years and its solvency ratio has plunged to negative 183%.

信泰人寿-185%偿付能力震惊市场 忙澄清 (Google in some places translates the firm's name as Nobuyasu or Thai)

Recently on Nobuyasu Life "capital 2.91 billion yuan a mystery," "$ 10 billion missing" and "investment plan to bypass the board of directors" and other news for this hotel in Hangzhou in 2007 registered a national insurance company "hanging" in cusp of public opinion.

Nobuyasu Life on the news release stated capital to shareholders hold a positive attitude, and that is certainly higher than the 2.91 billion yuan of new capital. And for $ 10 billion missing, as well as investment plans to bypass the board of directors, the company strongly denied.

These events, explore the message from last November letter from the Thai Life Insurance Regulatory Commission received a series of letters on its multi-drop regulatory solvency letter.

Increase their investment process has not been completed

November 8, 2013, letter Thai Life on the end of the third quarter due to the solvency adequacy ratio was 108.79%, less than 150% due to receipt of regulatory China Insurance Regulatory Commission letter, was suspended additional branches.

December 2013 letter Thai Life Insurance Regulatory Commission received a moratorium on regulatory equity investment letter, and the letter of the Thai Life Insurance regulatory agencies spent a professional audit by PricewaterhouseCoopers.

This year on March 11, 2013 letter Thai Life late fourth quarter actual capital -14.75 billion minimum capital of 793 million yuan, the solvency adequacy ratio was -185.96% belong to the solvency deficiency companies. CIRC issued a regulatory letter to him again, and ordered it to stop developing new business since March 17.

April 30, 2013 letter Thai Life released annual report, said the case late last year, the company has 2.91 billion yuan capital increase arrival, not included in the actual solvency capital is -183%, if you include the company's capital has been credited into account money is 184%. May 11, Nobuyasu Life For questions about media coverage of the capital increase issued a statement, a statement that the capital increase channels for both the old shareholders additional capital, including the introduction of new shareholders, new capital is definitely higher than 29.1 billion.

But now it has not yet put in place 2.91 billion yuan, in this letter, responsible person replies Thai Life Insurance Money Weekly (Micro Signal: money-week) reporters: "There is no finish CIRC's capital increase process, not yet released specific ways and determine the amount. "

"But part of the company's potential investor capital funds already in place, while the former capital increase involving changes in shareholders' equity and corporate governance structure, and therefore must complete the necessary communication within the laws, regulations and regulatory frameworks, by consensus, the old and new shareholders, After the legal process to officially become a shareholder of our company. "

Nobuyasu insurance also said: "still can not tell by the shareholders of the old capital or the new way of introduction to shareholders, but said other strong social capital to meet the regulatory requirements of the open doors."

In fact, premiums, product mix, sales channels, investment capacity and other factors determine the solvency situation of insurance firms. Nobuyasu Life was founded seven years increased from 2007's 015 million yuan in 2013 to 28.6 billion yuan.

But continued losses of five years between 2009-2013, on the loss of 210 million yuan in 2009, dropped to 160 million yuan in 2010, to the 2011 loss of 190 million yuan, in 2012 rose to 217 million yuan. Nobuyasu Life replies, "in 2013, for the turbulent investment market, the company adopted a prudent investment strategy, the overall investment rate of return on the level of an industry." But in 2013 the amount of losses surged to 480 million yuan.

Deny unreasonable product structure

Circle of Life is the law of life insurance normal operation will be profitable for seven years, and believe Thailand is a loss for five years.

In fact, there have been media pointed out, "the letter of the Thai Life loss is the use of short-term products with high price-driven, fast red scale, while supplemented by aggressive investment for high income business model, and the demand for these products the capital structure of larger, these factors led to believe these companies to enter the Thai Life vicious circle. "

Thai Life Insurance aspects reply to this letter Reporter:. "The report's argument is baseless Nobuyasu focus on continuous healthy development of the insurance, take a different sales strategies at different times, in addition to several short-term high-price products, the company's various Business Series main push a variety of cross-product, very well known in the industry as "one million driving" and one million products, are included on cross-type high-value products. "

Nobuyasu Insurance stressed: "The company is building covers accidents, severe illness, health care, retirement and wealth management products and systems are integrated into one turn Internet fragmentation and insurance concept combines recently, the development of personal net worth accounts -." One insurance ", proposed "Premiums fixed sum insured" innovative thinking. "

Mention of insurance products, the increase in premiums should be a good thing, but the media pointed out, "the letter Thai Life has made use of two universal insurance premium products about 9 billion yuan, respectively, to the letter Tai Jinli Shun Tai Jinli to endowment insurance and endowment A section of insurance, the media pointed out: how the funds from the sale of domination has become a major contradiction between shareholders, last July Nobuyasu Life is not operating management shareholders' meeting agreed to change investment plans. "

It has become a premium Nobuyasu Life is another "hidden." In this regard, the financial weekly response Nobuyasu Life (Micro Signal: money-week) Reporter: "2013, letter 泰金利 to endowment insurance and endowment of the original letter 泰金利 to paragraph A of insurance premium income of about 80 billion (" ASBE Interpretation No. 2 "before the implementation of the size of the premium)."

Nobuyasu Life stressed: "The above is not true because our prudent investment in the development of annual asset allocation plan, and after consideration by the Board of Directors, according to the Articles of Association and internal system processes and permissions required to carry out specific investment work, according to all asset allocation. annual plan, there is no change in the situation halfway. "

183% Becomes -87% and Dragon Life Is Suspended By Regulators

That was quick. Last week I posted Insurance Companies May Have Real Estate Risk.

Some Chinese insurance companies may be inflating the value of real estate holdings to meet solvency requirements, or simply making optimistic valuations based on expected price increases. The China Insurance Regulatory Commission (CIRC) is now conducting audits.

Yesterday, Dragon Life was told it cannot take new business and the company faces penalties and fines. The firm reported having a solvency adequacy ratio of 182.7%, but in reality it was negative 87%. There are 15 firms using fair value accounting, as does (did) Dragon Life, which could mean this is the tip of the iceberg. The firm's actual capital at the end of Q1 was negative ￥800 million. Last year, it invested ￥1.1 billion in real estate and by year end, it valued those investments at ￥2 billion.

CIRC is working on changing the accounting rules and this audit is aimed at cleaning up company books before the rule change.

-87.08%变182.7% 正德人寿虚报偿付能力遭查处

Also solvency lost relative Nobuyasu Life is just being suspended new business conduct, Masanori Life Insurance Regulatory Commission this time he was subject to heavy penalties, in addition to new business development, qualification and also to stop the creation of several business branches.

China Insurance Regulatory Commission recently sent a letter, saying the site inspection found Masanori Life "inflated" solvency. An insurance analyst at Shanghai on Southern reporter said, "Now the insurance companies are keen to invest in the real estate market due to different standards of real estate assessments, access to a large, easy to hold as an investment real estate company overstating profits and adequate solvency regulation Tools rates. "

Including Masanori Life, Life Insurance, Taikang Life Insurance, Union Life, etc., there are currently 15 companies for investment property using the "fair value method" of valuation, Masanori events or tip of the iceberg.

Masanori Life "water" Solvency

China Insurance Regulatory Commission recently issued a regulation this year's No. 8 letter on its website, the exposure of Masanori Life through the "government subsidies" and "other receivables" project inflated real capital behavior. CIRC said that after deducting violations recognized "government subsidies" and "other receivables", Masanori Life actual capital at the end of 2014 a quarter - 8.0844 yuan, -87.08% solvency ratio, which belongs to reimburse capacity is insufficient companies.

The regulators increased the punishment, not only suspended the CIRC Masanori Life's new business development qualifications, also suspended Masanori Life qualifications additional branches, in addition, also suspended Masanori Life new shares, unsecured non-financial corporations (companies ) bond, equity, real estate and financial products. If Masanori Life on June 30 failed to improve solvency, the CIRC will take further regulatory measures as appropriate. In this regard, the responsible person Masanori Life Southern reporter said, they will not make any response on the matter.

"Now insurance companies are keen to invest in the real estate market due to different standards of real estate assessments, greater access to wealth on paper to hide the risk level of real assets." Southern Reporter above analysts said.

Regulatory concerns about real estate risk

In fact, the management has long been a concern to this issue.

June 5, China Insurance Regulatory Commission announced the "clean-regulate insurance companies to invest in real estate matters related to the revaluation notice", submitted to the insurance company investment property measured at fair value itemized audit and accounting standards do not meet the solvency ability to regulatory requirements, will be ordered to adjust. Investment property usually refers to real estate to earn rentals or for capital appreciation, or both held. An insurance information management person in Shenzhen told reporters the South, all the insurance firms are faced with the review of investment real estate, including the fair value of each investment property to determine the basis of assessment issued by such agency reports.

The sources said, "" notice "introduced the background is part of the company's major real estate valuation is too high, some companies even reach about 5-10 times, so that the benefit of being able to improve the solvency adequacy ratio, but deviate from the subject's own values. Moreover, for various real estate valuation insurance firms different attitudes, there is no lateral comparable. "

Indeed, the scale of the recent real estate investment to maintain rapid growth. End of the first quarter of this year, the scale of investment property insurance institutions 75.487 billion yuan, an increase of 96.22% over last year.

Currently, all 33 insurance firms have investment real estate company behavior, including Masanori Life, Life Insurance, Taikang Life Insurance, Union Life and China Life, including 15 companies using "fair value method."

Look from the 2013 Annual Report, Masanori Life last year to 1.12 billion cost of investing in real estate, has been added to the end of 2 billion valuation. "The re-calculation of the solvency of the company, Masanori Life capital shortfall will be even greater, perhaps to seek shareholders' capital Masanori Life imperative. Heavy hand of the regulators, the market does not rule out the alert means." Above insurance analyst said.

Recent real estate stocks frequently placards Life Insurance, Ampang insurance investment real estate last year, more rapid growth of the scale, accompanied by a huge increase in the fair value as well as changes in income. If Ampang Insurance to 15.73 billion yuan at the end of all of the new scale, with changes in fair value gains increased 7.8 times to 6.71 billion yuan; Life Insurance also increased to 10.32 billion yuan by the end of 2012, 12.86 billion yuan at the end of , followed by the fair value gain from 795 million yuan to 1.86 billion yuan, while its net profit of 5.356 billion yuan.