MA: Using insurance funds to support the construction of the guaranteed housing

Author: Ding, chairman and chief executive officer of China Ping ' an group, MA, 2nd, submitted a motion to the fourth meeting of the 11th National Committee of CPPCC, from the point of view of people's livelihood project, to give full play to the role of insurance funds to improve people's livelihood, and to use insurance funds to support the The affordable housing is the people's livelihood project which the Central Committee and the State Council pay close attention to. To speed up the construction of affordable housing project, not only can help low-income families realize "home ownership", promote social harmony and stability, and promote the healthy development of national economy and real estate market.　　The State Council executive meeting, held in March 2010, made it clear that social capital should be encouraged to support the construction of affordable housing. In accordance with the spirit and instructions of the State Council and the CIRC on the active service and improvement of the people's livelihood of the insurance industry, combined with the regulatory provisions on the use of insurance funds by the CIRC, MA that the use of insurance funds to support the construction of affordable housing is not only conducive to speeding up the development　　It also helps to improve the long-term investment income of insurance fund, which is conducive to the long-term and stable development of insurance industry. The construction of affordable housing is an important thing for the benefit of the benefit. But the project, while effectively safeguarding and improving people's livelihood, has also brought greater financial pressure to the government because of the huge capital demand. Affordable housing is different from the development of ordinary commercial housing, the construction operation period is long, the profit margin is low, the commercial real estate enterprise participates in the power insufficiency, the financing difficulty is big. Currently, there are two main funds for the construction of affordable housing, one is the central financial subsidy and the other is the investment of local governments at all levels. According to the scale of the urban middle-income families in China, there are still 40 million sets of supply and demand gap in the current housing.　　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. Ma pointed out that the introduction of insurance funds and commercial mode of operation will help to fill the huge funding gap of the construction of affordable housing, effectively alleviate the government's huge financial expenditure pressure, accelerate the construction and development of the security and housing projects, and ensure the sustainable development of this important livelihood project, and also the insurance industry as an　　Social stabilizer ", for the people's bounden duty of welfare. Ma that insurance funds participate in the construction of affordable housing, but also meet the investment requirements of insurance funds. Insurance funds are characterized by large scale, long period of time, the pursuit of a reasonable balance of assets and liabilities matching and long-term sustainable stable return, the security requirements for the use of funds is high. The construction of affordable housing, different from the general commercial real estate investment, with the local government responsible, 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, guaranteed reliable investment varieties, in line with the current insurance fund balance allocation needs. At the same time, also help to reduce the use of insurance funds to the capital market dependence, effective regulationAvoidance of market volatility poses risks 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.