China Life Ping-an investment protection housing rules

Senior executives of China Life and Ping An insurance company of China, as members of the CPPCC, all take the initiative insurance funds to participate in the construction of the security house as the CPPCC proposal "Caixin net" (reporter Chenhuiying) China Life Group President Chao,　　MA, Chairman and chief executive officer of Ping An, has taken the initiative of insurance funds to participate in the construction of the security house as the CPPCC proposal during this year's NPC.　　Ma that the use of insurance funds to support the construction of security housing, not only conducive to speeding up the development of affordable housing construction projects, but also to improve the long-term investment of insurance funds, conducive to long-term and stable development of insurance industry. Because of the huge demand for construction funds, long construction operation period, low profit margin, commercial real estate enterprises to participate in power shortage, financing difficulties.　　Currently, the construction of affordable housing relies mainly on central financial aid and local government funds. Ma said in the proposal, according to the size of China's urban middle-income low-income households, the current supply and demand for affordable housing is still 40 million sets.　　The State Council and the Ministry of Housing construction plan in 2011 years to build 10 million housing, compared to 2010 growth of 72.4%, to reach the national Real estate Investment scale of 20%, the total investment is expected to exceed 1 trillion yuan.　　Chao that the insurance fund has the characteristics of large scale, long cycle and stable source of funds, which is very suitable for the investment and construction of the housing. Ma pointed out that the protection of housing construction, different from the general commercial real estate investment, with local government responsibility, designated land allocation, the provision of profit space, commitment to repurchase and other mandatory requirements, for insurance funds, is a risk-controllable, long-term stability, guarantee a reliable investment varieties, in line with the current insurance fund assets and liabilities of the allocation needs.　　At the same time, it also helps to reduce the dependence of insurance funds on the capital market, and effectively avoids the risks brought by market fluctuation to the use of insurance funds.　　On the concrete measures, MA put forward three suggestions, first, the insurance enterprises to set up a special fund for investment in housing construction, in accordance with the "government-led, commercial operation" model, the establishment of high efficiency, low-cost, high transparency of the operating mechanism, and the Government to jointly promote the construction and development of secure housing　　Secondly, the investment income of the guaranteed housing is not high, taking into account the basic return requirement of insurance funds, it is suggested that the Government should give certain tax support policy to the insured housing construction project of insurance fund participation, relieve the related tax, and enhance the enthusiasm of the insurance enterprise participation.　　In addition, based on the characteristics of public welfare, long-term and stability of the housing, it is suggested that the CIRC should take the insurance funds into the construction of the infrastructure construction, classify them according to the creditor's right level, and allow the insurance funds to invest in various ways, such as fund, equity and creditor's rights. Chao pointed out that, because some funds to use the specific implementation of the details are not clear, the current channel liberalization is only nominal and formal, so that the insurance funds on infrastructure equity, real estate, emerging industries and other fields and projects of investment can not carry out the essenceSexual operation.　　Chao proposed that by the CIRC and the Ministry of Housing construction and other ministries lead, as soon as possible insurance funds to participate in the investment and management of the relevant rules, and to give a certain policy tilt, so as to promote the construction and development of affordable housing at the same time, to achieve good and rapid development of insurance industry. At the same time, he suggested that large insurance companies with strong internal controls should relax their investment autonomy appropriately and streamline the approval process of non major projects so that they could better grasp the market opportunities.