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Criteria on the Remising of State-owned Land Use Right on the basis of Agreement (For Trial Implementation)
Guo Tu Zi Fa [2006] No. 114
May 31, 2006
(Promulgated by Guo Tu Zi Fa [2006] No. 114 on May 31,2006 and shall enter into force as of August 1, 2006)
Catalogue
Foreword
1. Scope of Application
2. Quotative Criteria and Documents
3. Basis
4. General Rules
5. Selling Agreement in the Link of Land Supply
6. Application of a User of Allocated or Leased Land for on the basis of Agreement Selling
7. On the basis of Agreement Selling of the Use Right of Allocated Land
8. Dealing with the Conditions for Land Use, Such as Alteration of the Purpose of Use of the Assigned Land
Annex A Model Text Formatting for “Letter of Intent on the Selling State-owned Land Use right”
Annex B Model Text Formatting for “Notice on Granting to Transfer of the Use right of Allocated Land”
Foreword
For the purpose of perfecting the remising system of state-owned land use right, regulating the selling state-owned land use right
on the basis of agreement, unifying the relevant procedures and standards, strengthening the management of state-owned land assets
and promoting the construction of the land market, the current Criteria is formulated according to the Law of the People’s Republic
of China on Land Administration, the Law of the People’s Republic of China on the Administration of Urban Real Estate, the Interim
Regulation of the People’s Republic of China on the Assigning and Transferring Urban State-owned Land Use Right, and the Provisions
on the Remising on the Basis of Agreement of State-owned Land Use Right.
Annexes A and B herein are the model text formats which are required in the remising on the basis of agreement.
The current Criteria has been formulated and put under charge of the Ministry of Land and Resources.
The sketching-out entities of the current Criteria are: the Administrative Department of Land Utilization of the Ministry of Land
and Resources, the Land Sort-out Center of the Ministry of Land and Resources, the Administrative Department of Land and Resources
of Liaoning Province, the Administrative Department of Land and Resources of Heilongjiang Province and the Administrative Department
of Land and Resources of Jiangsu Province.
The chief sketching-out personnel of the current Criteria are: Liao Yonglin, Leng Hongzhi, Yue Xiaowu, Lei Aixian, Gao Yong, Xie Liangxiong,
Wu Di, Song Yubo, Mou Aofeng, Ye Weidong, Zhong Songyi, Lin Lisen, Shen Liang, Chen Meiying, Zhou Xu, Shen Fei and Zhang Fang. The
sketch out participants (arranged in a sequence with regard to the number of strokes of their surnames): Yu Shizhuan, Ma Shang, Wang
Wei, Che Changzhi, Deng Yuefang, Ye Yuanpeng, Ye dong, Ren Zhaohong, Guan Wenrong, Liu Xianqi, Liu Xiangyuan, Liu Ruiping, Zhu Yude,
Wen Hongxi, Yan Zheng, Wu Yonggao, Wu Haiyang, Zhang Wanzhong, Zhang Yingqi, Li Yanrong, Li Xiaojuan, Li Xiaobin, Shu Kexin, Yang
Yufang, Yang Jiangzheng, Xiao Jianjun, Chen Yongzhen, Chen Guoqing, Lin Junheng, Luo Yanguang, Zhu Jun, Hu Libing, Hu Hongbing, Zhao
Chunhua, Hao Jihu, Gao Zhiyun, Xu Jianshe, Tu Gaokun, Qin Shuilong, Qian Yougen, Liang Hong, Huang Wenbo, Han Jianguo, Han Hongwei,
Jin Wei, Pan Honggao, Wei Cheng, Wei Lihua
The Ministry of Land and Resources is responsible for interpreting the current Criteria.
1.
Scope of Application
The remising on the basis of agreement of state-owned land use right within the People’s Republic of China shall be governed by the
current Criteria. The base of agreement lease and remising of other state-owned land rights shall be directed according to the current
Criteria.
2.
Quotative Criteria and Documents
The clauses included in the following Criteria and documents constitute an integral part of the articles of the current Criteria because
of their quotation. All the versions included herein shall be of effect with promulgation of the current Criteria. All the parties
that apply the current Criteria shall use the latest versions of the standards and documents followed:
Regulations on the Urban Land Evaluation (GB/T 18508-2001)
Model Text of “Contract on the Remising of State-owned Land Use Right” (Guo Tu Zi Fa [2000] No. 303)
Classification of the National Land (Guo Tu Zi Fa [2001] No. 255)
Guidepost of the Land Used for Industrial Construction Projects (Guo Tu Zi Fa [2004] No. 232)
3.
Basis
(1)
Land Administration Law of the People’s Republic of China
(2)
Urban Real Estate Administration Law of the People’s Republic of China
(3)
City Planning Law of the People’s Republic of China
(4)
Administrative License Law of the People’s Republic of China
(5)
Contract Law of the Peoples Republic of China
(6)
Interim Regulations of the Peoples Republic of Chin Concerning the Assignment and Transfer of the Right to the Use of the State-owned
Land in the Urban Areas
(7)
The Implementation Program of Setting up and Perfecting the System of Education, Bylaws and Supervision to Improve the Measures Against
Corruption(Zhong Fa [2005] No. 3)
(8)
Order No. 15 of the State Council on Reinforcing the Administration of State-owned Land Assets (Guo Fa [2001] No. 15)
(9)
The State Council’s Decision Concerning Intensifying Reform and Strengthening Land Administration (Guo Fa [2004] No. 28)
(10)
Provisions on the Remising on the basis of Agreement of State-owned Land Use Right (Decree No. 21 of the Ministry of Land and Resources)
4.
General Rules
4.1
Connotation of Remising on the basis of Agreement of State-owned Land Use Right
The term “remising on the basis of agreement of state-owned land use right” herein means an act whereby the administrative department
of land and resources at the municipal or county level transfers state-owned land use right to land users for a fixed number of years,
and the land users shall pay fees for the remising of state-owned land use right.
4.2
Principles of Remising of State-owned Land Use Right on the basis of Agreement
(1)
Being open, fair and impartial; and
(2)
Being Honest and Credible.
4.3
The Range of Remising of State-owned Land Use Right on the basis of Agreement
The situations are as follows where an remising of state-owned land use right may be directed by bringing an agreement to an end unless
it is set down by any law, regulation or rule that the ways of bid tendering, auction or hanging out a shingle shall be used:
(1)
Any land, excluding those used for commerce, tourism, entertainment and commercial residence, is only one intended land user after
a plan of land supply is released;
(2)
If an original user of any allocated or leased land applies for remising on the basis of agreement, it may use the means of ending
an agreement upon getting an approval according to law, unless it is defined clearly in the Decision on the Allocation of State-owned
Land, the Contract on the Lease of State-owned Land, or any law, provision or administrative regulation that the land use right shall
be return to new public remising again;
(3)
If an application for remising on the basis of agreement is filed for assigning the use right of allocated land, after an approval
is gotten according to law, the means of bringing an agreement to an end may be adopted unless it is defined clearly in the Decision
on the Allocation of State-owned Land, the Contract on the Lease of State-owned Land, any law, provision or administrative regulation
that the land use right shall be return to new public remising again;
(4)
The ways of bringing an agreement to an end may be adopted where a user of any assigned land applies for renewal of the land use right
and if the application is approved through examination; and
(5)
Under any other circumstance where it is defined clearly in any law, regulation or administrative provision that an remising on the
basis of agreement may be directed.
4.4
Organizations Management that Take upon the Remising of State-owned Land Use Right on the basis of Agreement
The remising on the basis of agreement of state-owned land use right shall be organized and carried out by the administrative department
of land and resources at the municipal or county level.
The way of collective decision-making shall be used for the remising of state-owned land use right. The administrative department
of land and resources at the municipal or county level may establish an institution responsible for the coordination and decision-making
of the remising of state-owned land use right in order to see to coordinate and cope with the relevant problems in the process of
remising and determine the relevant matters in a collective manner according to the real situation.
4.5
Arbitrament about Dispute on Prices of Remising on the basis of Agreement
As far as any land that is exclusively used for business infrastructure or mining is concerning, a ruling system for any dispute on
prices of remising on the basis of agreement shall be set up. In the process of remising on the basis of agreement of any land under
the aforesaid category and if an intended user cannot accord with the assignor with regard to the assigning price because the intended
user thinks that the assigning price presented by the assignor is higher evidently than the market price of land, it may apply to
the administrative department of land and resources at the next higher level over the assignor for a ruling on the dispute on assigning
price.
4.6
Local Supplementary Provisions
A region may make supplementary provisions or detailed rules for the implementation of the present rules and present them to the administrative
department of land and resources at the next higher level for archival filing.
5.
Remising on the basis of Agreement in the Link of Land Supply
5.1
The General Processes for Remising on the basis of Agreement of State-owned Land Use Right in the Link of Land Supply
(1)
Disclosing remising information, accepting applications for land use and determining the way of land supply;
(2)
Formulating a plan of remising on the basis of agreement;
(3)
Evaluating the land price and determining the base price;
(4)
Reporting for approval the plan of remising on the basis of agreement and the base price;
(5)
Negotiating and concluding a Letter of Intent;
(6)
Publication;
(7)
Bringing an agreement to an end on remising and publicizing the result of remising;
(8)
Verifying an Approval for Construction Land and delivering the land;
(9)
Delivering the land for land registration.
5.2
Publishing the Information on Remising, Accepting Applications for Land Use and Determining the Way of Land Supply
5.2.1
The administrative department of land and resources at the municipal or county level shall publicize to the general public the approved
remising plan of state-owned land use right, a region with mature conditions may detail the remising plan of state-owned land use
right by stages to the specific location and plots and publicize the relevant information to the general public in a timely manner
according to the progress of land supply. The information on a remising plan of state-owned land use right as well as the detailed
location and plots shall be publicized via www.landchina.com simultaneously.
5.2.2
The administrative department of land and resources at the municipal or county level shall publicize the information on a remising
plan and detailed location and plots of state-owned land use right, and shall make clear simultaneously the way and method for one
to apply for land use, and publicly accept applications for land use.
5.2.3
An entity or individual that requests for land use (hereinafter referred to as an intended land user) shall submit an application
for land use to the administrative department of land and resources at the municipal or county level according to an remising plan
of state-owned land use right and the information on detailed location and plots that have been publicized as well as based on the
demand of self-use land.
5.2.4
Within the prescribed time limit, the administrative department of land and resources at the municipal or county level may adopt the
means of remising on the basis of agreement if only one intended user applies for a plot, except for the operational land used for
commerce, tourism, entertainment and commercial residence. Where it cannot be determined whether a land falls within the scope of
remising on the basis of agreement remising or not, it may be determined by the institution responsible for the coordination and
decision-making of remising on the basis of agreement of state-owned land use right.
5.3
Formulating a Plan of Remising on the basis of Agreement
The administrative department of land and resources at the municipal or county level shall formulate an remising plan of state-owned
land use right in collaboration with such departments as planning department and according to its remising plan of state-owned land
use right, urban planning and the type and scale of the land that an intended applicant has applied for.
A plan of remising on the basis of agreement shall include: location of the to-be-assigned plot, boundary, purpose of use, area, fixed
number of year, demands for land use, time of land supply and way of land supply, etc..
5.4
Evaluating the Land Price and Determining the Base Price
5.4.1
Evaluating the Land Price
The administrative department of land and resources at the municipal or county level shall organized an evaluation on the normal market
price of the to-be-assigned plot based on the status of the to-be-assigned plot and according to the Regulations on the Urban Land
Price Evaluation.
The land price evaluation shall be directed by the administrative department of land and resources at the municipal or county level
or by the affiliated public institutions thereunder or may, be entrusted to evaluation institutions of land or real estate with the
qualification of land evaluation according to the actual demands.
5.4.2
Determination of the Base Price
The administrative department of land and resources at the municipal or county level or the institution in charge of the coordination
and decision-making of state-owned land use right shall make a collective decision so as to determine the base price of remising
on the basis of agreement according to the result of land evaluation, industrial policies and the land market.
The base price of remising on the basis of agreement shall not be any lower than the minimum price of remising on the basis of agreement
within the region where the plot is located.
Any base price of remising shall, once determined, be kept confidential before a remising is signed and no entity or individual may
divulge it.
5.5
Reporting Plan of Remising on the basis of Agreement and the Base Price for Approval
The administrative department of land and resources at the municipal or county level shall, according to the relevant provisions,
report the plan of remising on the basis of agreement and the base price to the competent people’s government for approval.
5.6
Negotiation and Conclusion of Letter of Intent
The administrative department of land and resources at the municipal or county level shall direct negotiate with the intended land
user on the price of land remising in light of the approved plan of remising on the basis of agreement and the base price. The negotiation
representatives of the administrative department of land and resources shall be over 2 persons in the process of negotiations.
Upon the consensus of both parties concerned through negotiation, the administrative department of land and resources at the municipal
or county level shall sign with the intended land user a Letter of Intent on the Remising of State-owned Land Use Right if it is
agreed that the assigning price shall be no less than the base price.
5.7
Publication
5.7.1
The administrative department of land and resources at the municipal or county level shall, after a Letter of Intent on the Remising
of State-owned Land Use Right is concluded, publicize such contents as the location, function of use, area, term for remising, demands
for land use, intended land users and the sketching-out price of remising in such designated places as the local tangible land market
as well as on the website www.landchina.com, wherein the method and way of feedback shall be given indications. The publication shall
be over 5 days.
5.7.2
During the period of publication, under the condition of any dissidence and if the administrative department of land and resources
at the municipal or county level does find any violation of the relevant laws and regulations in the process of examination, the
procedures for remising on the basis of agreement shall be ended.
5.8
Conclusion of Contract on Remising and Publication of Remising Results
Upon expiration of the publication period, under the condition of no dissidence or under the condition of any dissidence yet if the
administrative department of land and resources at the municipal or county level does not find any violation of any law or regulation
in the process of examination, the administrative department of land and resources at the municipal or county level shall sign with
the intended land user a Contract on the Remising of State-owned Land Use Right according to the commitments of the Letter of Intent
on the Remising of State-owned Land Use Right.
The administrative department of land and resources at the municipal or county level shall publicize the results of remising on the
basis of agreement to the general public on the website www.landchina.com as well as in such designated places as the tangible land
market within 7 days as of the day when a Contract on the Remising of State-owned Land Use Right is signed, in order to accept social
supervision.
The remising results to be publicized shall cover the location of land, area, purpose of use, development, grade of land, capacity,
term for remising, way of supply, assignee, trading price and trading time.
5.9
Verification and Issuance of the Land Using Permit for Construction and Delivery of Land
The administrative department of land and resources at the municipal or county level shall verify and issue the Land Using Permit
for Construction and give the land to the relevant assignee according to the schedule and term as specified in the Contract on the
Remising of State-owned Land Use Right and the Land Using Permit for Construction.
5.10
Coping with of Land Registration
An assignee shall, according to the provisions of the Contract on the Remising of State-owned Land Use Right, apply for dealing with
the formalities for land registration, collect the License for State-owned Land Use in order to get the land use right.
5.11
Archival Filing of Materials
After all the formalities for remising on the basis of agreement are gone through, the administrative department of land and resources
at the municipal or county level shall, according to the relevant provisions, put in order and place on archives the relevant materials
and documents in such links as the publication of remising information, application for land use, examination and approval, negotiation,
publicity and conclusion of agreement in the process of land remising. The materials of land remising that shall be placed on archives
include:
(1)
Application materials for land use;
(2)
Conditions of the land plot and the demands of the planning indicators for the land plot;
(3)
Evaluation Report on Land;
(4)
The base price of land remising and records of collective decision-making;
(5)
Scheme of remising on the basis of agreement;
(6)
Reply to a scheme of remising;
(7)
Notes of negotiations;
(8)
Letter of Intent on Remising on the basis of Agreement
(9)
Publication materials of remising on the basis of agreement;
(10)
Contract on the Remising of State-owned Land Use Right;
(11)
Announcement Materials on the Results of Remising on the basis of Agreement;
(12)
Verification and Issuance of the Land Using Permit for Construction as well as the relevant materials of land delivery; and
(13)
Other materials that shall be placed on archives.
6.
Application of Original User of any Allocated or Leased Land for Remising on the basis of Agreement
6.1
Where an original user of any allocated or leased land applies for remising on the basis of agreement, it shall be coped with according
to the following circumstances:
(1)
Where such demands for land use as the purpose of land use are not required to be altered and if the demands for planning are satisfied,
it shall be reported to the people’s government at the municipal or county level for approval and may be settled by means of remising
on the basis of agreement
(2)
Where such 7 demands for use as the purpose of land use can be altered upon approval of the administrative department of planning,
the relevant formalities for remising on the basis of agreement may be coped with upon approval of the people’s government at the
municipal or county level, unless it is defined clearly in the Decision on the Allocation of State-owned Land, the Contract on the
Lease of State-owned Land, any relevant law, regulation or administrative regulation that the use right of allocated land shall be
return to new public remising again.
6.2
Application and Acceptance
6.2.1
It or he shall apply to the administrative department of land and resources at the municipal or county level upon the following relevant
materials if the original user of any allocated or leased land applies for dealing with the formalities for remising:
(1)
An Application;
(2)
A License for State-owned Land Use, a Decision on the Allocation of State-owned Land or a Contract of the Lease of State-owned Land;
(3)
Certification of the property right of above-ground structures, constructional work as well as other attaching;
(4)
Effective identity supporting documents of the original user to the land use right;
(5)
Approval documents issued by the administrative department of planning on changing the purpose of land use; and
(6)
Any other relevant material as defined clearly by any law, regulation or administrative regulation to be presented.
6.2.2
It shall implement a preliminary examination on the application materials and decide whether to accept it or not after the administrative
department of land and resources at the municipal or county level accepts an application.
6.3
Examination and Making Sure of a Plan of Remising on the basis of Agreement
6.3.1
Examination
It shall direct an examination on the application materials according to the relevant provisions, and consult the opinions of the
administrative department of planning regarding the purpose of use of the plot after the administrative department of land and resources
at the municipal or county level accepts an application. Where, upon examination, an application for plot use abides by the planning
and meets the demands for dealing with the formalities for remising on the basis of agreement the administrative department of land
and resources at the municipal or county level shall carry out a land price evaluation, ascertain the sum of land remising and sketch
out a plan of remising on the basis of agreement.
6.3.2
Land Price Evaluation
The administrative department of land and resources at the municipal or county level shall carry out an evaluation on the market price
of remising of the applied plot as well as the price of rights and interests of the use right of allocated land or the market price
of the use right of the leased land. The base date of evaluation shall be regarded as the time of the remising. Where such demands
for land use as the purpose of land use are altered, the price of the land use right shall be evaluated according to the new terms
of demands for land use.
6.3.3
Verification of the Remising Sum and Sketching-out of the Remising Plan
The administrative department of land and resources at the municipal or county level or the institution in charge of coordination
and decision-making of state-owned land use right shall, according to the result of land price evaluation, industrial policies and
the current land market, make a collective decision, determine the sum of remising on the basis of agreement of land in a collective
manner and sketch out a plan of remising on the basis of agreement.
6.3.3.1
An applicant shall pay the price of remising on the basis of agreement of the land use right according to the following formulas:
(1)
Where such demands for land use as the purpose of use have not been changed
Payable Sum for the Remising of Land Use Right =Market Price of Remising of the Use Right of the to-be-assigned Land C Price of Rights
and Interests of the Use Right of Allocated Land or the Market Price of the Use Right of Leased Land
(2)
Where such demands for land use as the purpose of use have been changed
Payable Sum for the Remising of Land Use Right = Market Price for Remising of the Use Right of the to-be-assigned Land on the New
Terms of Demands for Land Use – Price of Rights and Interests of the Use Right of Allocated Land or the Market Price of the Use Right
of Leased Land on the Original Terms of Demands for Land Use
6.3.3.2
A plan of remising on the basis of agreement shall cover the location, boundary, purpose of use, area, term, time of remising as well
as the payable sum for the remising of the plot subject to the dealing with of formalities for remising.
6.4
Report of Remising Plan for Approval
The administrative department of land and resources at the municipal or county level shall report the plan of remising on the basis
of agreement to the people’s government at the municipal or county level for examination and approval according to the relevant provisions.
6.5
Conclusion of Remising Contract and Publication of Remising Results
After the people’s government at the municipal or county level approves the plan of remising on the basis of agreement, the relevant
administrative department of land and resources shall recede the Decision on the Allocation of State-owned Land from the land user
or relieve the Contract on the Lease of State-owned Land, nullify the registration of land, take back the original land certificate
and sign with the applicant a Contract on the Remising of State-owned Land Use Right according to the approved plan.
After a Contract on the Remising of State-owned Land Use Right is signed, the administrative department of land and resources at the
municipal or county level shall publicize the results of remising according to Provision 5.8.
6.6
Dealing with of Land Registration according to Provision 5.10
6.7
Archival Filing of Materials
After all the formalities for remising on the basis of agreement are gone through, the relevant bureau of land and resources at the
municipal or county level shall arrange the relevant materials and documents in such links as the application for land use, examination
and approval and conclusion of contract in the process of land remising and place them on archives according to the relevant provisions.
The materials of land remising that shall be placed on archives include:
(1)
Application materials of an applicant;
(2)
Land conditions and the relevant materials;
(3)
Materials of land price evaluation;
(4)
Ascertaining materials of the sum of remising;
(5)
Plan of remising on the basis of agreement;
(6)
Reply to the remising plan;
(7)
Contract on the Remising of State-owned Land Use Right;
(8)
Announcement materials of remising on the basis of agreement; and
(9)
Other materials that shall be placed on archives.
7.
Remising on the basis of Agreement for the Transfer of the Use Right of Allocated Land
7.1
For an application for the transfer of the use right of allocated land, it shall be subject to the approval of the people’s government
at the municipal or county level and the relevant assignee may, upon getting approval, direct an remising on the basis of agreement,
unless it is defined clearly in the Decision on the Allocation of State-owned Land, or any law, regulation or administrative regulation
that the use right of allocated land shall be receded for new public remising.
7.2
Application and Acceptance
7.2.1
An original land user shall apply to the administrative department of land and resources at the municipal or county level for transfer
of the use right of allocated land with the following relevant materials:
(1)
An Application;
(2)
Certificate of State-owned Land Use Right and Decision on the Allocation of State-owned Land;
(3)
Certification on the property rights of above-ground structures, constructional work as well as other attaching;
(4)
Effective identity supporting documents of the original land user;
(5)
Written opinions of co-owners, in case any real estate is co-owned; and
(6)
Any other relevant material as defined clearly by any law, provision or administrative regulation to be presented.
7.2.2
After receiving an application, the administrative department of land and resources at the municipal or county level shall direct
a preliminary examination on the application materials which an applicant has presented and decide whether to accept it.
7.3
Examination and Determination of a Plan of Remising on the basis of Agreement
7.3.1
Examination
After accepting an application, the administrative department of land and resources at the municipal or county level shall direct
an examination on the application materials as presented by the applicant according to the relevant provisions and consult the opinions
of the administrative department of planning in term of
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Some Opinions of the State Council concerning the Reform and Development of the Insurance Industry
Guo Fa [2006] No. 23
The people’s governments of all provinces, autonomous regions and municipalities directly under the Central Government, all ministries
and commissions of the State Council and the institutions directly subordinate to the State Council:
Since the reform and opening up, especially the 16th Party Congress, remarkable achievements have been made in the reform and development
of the insurance industry in China. The insurance operations have grown rapidly, the service scope has been continuously broadened,
the market system has been increasingly perfected, the laws and regulations have been gradually improved, the supervisory level have
been continuously enhanced, and the risks have been effectively prevented and avoided, which makes the overall strength obviously
reinforce This is playing an important role in promoting the reform, guaranteeing the economy, stabilizing the society, benefiting
the people and etc. However, since the insurance industry has a late start, a weak base and a narrow coverage, its functions are
not fully exerted, and it does not adapt to the requirements for building a well-off society in an all-round way and constructing
a harmonious socialistic society, to establish a sound socialistic market economy, or to the new situations of economic globalization,
financial integration and opening up to the external in an all-round way. Now facing the future, the development of insurance industry
stands on a new historical starting point with huge development potentiality and space. With the purpose of fully implementing the
scientific development view, clarifying the guiding ideology, objectives, tasks, policies and measures for the reform and development
of the insurance industry for a period in future, accelerating the reform and development of the insurance industry, and promoting
the construction of a socialistic harmonious socialistic society, we hereby propose the following opinions:
I.
Fully recognizing the important significance of accelerating the reform and development of the insurance industry
Insurance has the function of economic compensation, financing and social management. It is a basic means of risk management under
market economy conditions, it is also an important part of the financial system and the social security system, and it plays an important
role in building a harmonious socialistic society. Accelerating the reform and development of the insurance industry can help respond
to the risks of disasters and accidents, and guarantee the safety of the people’s lives and properties as well as the stable operation
of economy. Every year, the people of China suffer a huge life and property loss due to natural disasters and various traffic products
and other accidents. Because of the restrictions in aspects of system, mechanism and etc., only a low proportion of enterprises and
families buy insurances, and only a small part of losses from disasters and accidents can be compensated through insurance, which
is not beneficial to timely resuming the work and living order and meanwhile increases financial and affair burdens of the government.
Accelerating the reform and development of the insurance industry and building a market-based mechanism of compensating losses from
disasters and accidents will play an irreplaceable important role improving the disaster prevention and salvation system, enhancing
the capabilities of the whole society to prevent risks and promoting the rapid and healthy development of the economy.
Accelerating the reform and development of the insurance industry helps to improve the social security system and meet the masses’
multi-level demands for social security. At present, China is within a key period of improving socialistic market economy, the ageing
progress of the population speeds up, the people’s living standards improve and the demands for social security become increasingly
intense. Accelerating the reform and development of the insurance industry and encouraging and inducing the masses to buy insurances
of commercial endowment or health, etc. will be of important realistic significance to improving the social security system, enhancing
the level of social security of the whole society, enlarging the demands of resident consumptions and realizing social stability
and harmony.
Accelerating the reform and development of the insurance industry will help optimize the allocation of financial resources and improve
socialistic market economy. The financial system of China develops unevenly with excessive indirect financing, which has infected
the efficiency of allocating financial resources and obstructed the diffusion and elimination of financial risks. The beginning 20
years of the present century are an important period of great strategic opportunity for China to speed up its development, so the
core function of finance in modern economy is even more prominent. Accelerating the reform and development of the insurance industry,
exerting the important functions of insurance in allocating financial resources and promoting the coordinative development of currency
market, capital market and insurance market will be of important significance to improve the financial system and the socialistic
market economy.
Accelerating the reform and development of the insurance industry is beneficial to social management, innovations in public service
and the improvement of the efficiency of government administration. With the deepening of the reform of administration system, the
governments must integrate various social resources, make full use of market mechanisms and means, and continuously improve the social
management and public services. Accelerating the reform and development of the insurance industry, actively adopting the insurance
mechanism in social management, coordinating various interest relations, effectively eliminating social contradictions and disputes
and propelling public service innovations will be an important promotion to improving the socialistic economic compensation mechanism,
further transforming government functions and enhancing the efficiency of government administration.
II.
The guiding ideology, overall objective and major tasks of accelerating the reform and development of the insurance industry
With the advancement of the economic and social development of China and the continuous improvement of the socialistic market economy,
the masses’ recognition on insurance has been further deepened, masses’ demands for insurance have become increasingly intense, insurance
has come to play a more prominent role, and the base and conditions for its development has become increasingly mature. Accelerating
the reform and development of the insurance industry has become necessary for promoting the construction of the harmonious socialistic
society.
The guiding ideology of accelerating the reform and development of the insurance industry shall be: with Deng Xiaoping Theory and
the important thoughts of “Three Represents” as guidelines, adhering to the human-oriented and all-roundly coordinated sustainable
scientific development view, being based on the overall situation of reform, development and stability to focus on the resolving
of the contradictions between the insurance industry and the economic and social development or the living demands of the people,
deepen the reform, speed up the development, try to make it greater and stronger, develop a Chinese-characteristic insurance industry,
fully exert the functions of insurance as an economic “roll booster” and social “stabilizer”, so as to serve the construction of
a well-off society in an all-round way and a harmonious socialistic society.
The overall objective shall be: to build up a modern insurance industry with a sound market system, wide service scope, credible and
regulated operation, sufficient repayment capacity and strong synthetical competitive strength, which unifies the development speed,
quality and efficiency. Surrounding this objective, the major tasks should be: to broaden insurance service scope, to actively develop
the property insurance, life insurance, reinsurance and insurance intermediary market and to improve the insurance market system;
to continue to deepen the reform of the system and mechanisms, improve the corporate governance structure, enhance the quality and
level of opening to the external, and enhance the international competitive strength and the capacity of maintaining sustainable
development; to propel independent innovations, adjust and optimize the structure, to transform the way of growth, and continuously
advance the service level; to reinforce the management of the use of insurance funds, enhance the level of using funds, and to providing
fund supports for national economic construction; to reinforce and improve the supervision, prevent and avoid risks, and concretely
protect the lawful rights and interests of the insured; to improve the regulations and policies, propagandize and permeate insurance
knowledge, speed up the establishment of the insurance credit system, impel the honesty and credibility construction, and build a
favorable developing environment.
III.
Advancing experiments actively and steadily, and developing multi-form and multi-avenue agricultural insurances.
We shall carefully summarize the experience from experiments, study and make supporting policies, explore to establish an agricultural
insurance development mode suitable for the situation of our country, regard agricultural insurance as an innovation to support agriculture,
and bring it into the agricultural support and protection system. We shall exert the positivity of the Central Government, local
governments, insurance agents, leading enterprises, farmer households and other aspects, exert the function of the agricultural departments
in promoting agricultural insurance legislation, inducing farmers to buy insurances, coordinating the relations of all parties concerned,
promoting the agricultural insurance development and etc., and we shall enlarge the coverage of agricultural insurance and stepwise
establish a agricultural insurance system of multi-form operation and with multi-avenue supports.
We shall clarify the business scope of policy-based agricultural insurance, provide policy support and promote the development of
agricultural insurance in our country. We shall change the singular mode of agricultural disaster relief with post-disaster financial
subsidies, and stepwise establish an agricultural risk prevention and relief mechanism combining the policy-based agricultural insurance
with financial subsidies. We shall explore the methods, breeds and proportions of subsidies provided by the central and local finance
to farmers who have bought insurances, provide proper management subsidies to the policy-based agricultural insurance run by insurance
agents, and stepwise establish a mechanism of long effect for the development of agricultural insurance. We shall improve the multi-level
mechanism for transferring and sharing the risks of great agricultural disasters, and explore an agricultural reinsurance system
supported by both central and local finances.
We shall explore and develop various agricultural insurance organizations of mutual or cooperative mechanism, and encourage leading
enterprises to imburse farmer households who buy agricultural insurance. We shall support insurance agents to develop agricultural
insurance products with moderate security, low premiums and exoteric certificate of insurance, and build up service networks and
sales channels suitable for agricultural insurance. We shall support agricultural insurance agents to launch characteristic agricultural
and other agriculture-involved insurance business, and advance the lever of agricultural insurance service .
IV.
Make overall plans on developing urban and rural commercial endowment insurance and health insurance, and improve the multi-level
social security system.
We shall adapt ourselves to the new situation of improving the socialistic market economy and building a new socialistic countryside,
make great efforts to develop commercial endowment insurance and health insurance and other life insurance business to satisfy the
demands of urban and rural masses for insurance security.
We shall actively develop insurance businesses of endowment for individuals and entities, encourage and support qualified enterprises
to set up multi-level pension plans through commercial insurance and to improve the security for employees. We shall fully exert
the professional advantages of insurance institutions in actuarial analysis, investment, account management , pension payment and
other aspects ., and encourage them to actively participate in enterprise annuity business, broaden and supplement endowment insurance
service scope. We shall endeavor to promote the development of health insurance, and support relevant insurance institutions to invest
in medical institutions. We shall make great efforts to develop commercial endowment insurance, health insurance and accidental injury
insurance suitable for farmers. We shall establish the contraceptive operation insurance and rural family endowment insurance system
for family planning, and shall actively explore effective methods for insurance institutions to take part in new rural cooperative
medical care management, and propel the healthy development of new rural cooperative medical care.
V.
Making great efforts to develop liability insurance, and improving production safety security and emergency responding mechanism.
We shall fully exert the important functions of insurance in preventing disasters and reducing and in dealing with disasters and accidents,
and bring insurance into the disaster and accident prevention and relief system. We shall continuously intensify the risk management
capacities of insurance institutions, utilize the insurance mechanism which unifying pre-insurance prevention and after-the-event
compensation, fully exert the incentive and restrictive functions of the insurance premium rate leverage, reinforce before-the-event
risk prevention, reduce disasters and accidents and promote t safe production and emergency response management.
We shall adopt methods such as market-oriented operation, policy-based guidance, government propelling, legislative compulsion and
etc. to develop the insurance businesses in aspects of safe production liability, construction engineering liability, product liability,
public liability, practicing liability, board director’s liability, environment pollution liability and etc. We shall carry out experiments
of compulsory liability insurance in coal mining and other industries, and after having accumulated enough experience, stepwise extend
compulsory liability insurance to the highly dangerous industries, public gathering places, domestic and abroad travel and etc. We
shall improve the risk deposit system for safe production in highly dangerous industries, and explore in normative management and
operation through professional insurance agents, so as to further improve the compulsory liability insurance system for motor vehicles
traffic accidents. We shall establish uniform medical treatment liability insurance after experiments, and propel the insurance industry
to take part in “safe construction”.
VI.
Propelling independent innovations, advancing the level of service.
We shall improve the insurance innovation mechanism with insurance enterprises as the subjects and market demands as the guidance,
and in draught insurance innovation mechanism combining with independent innovation. We shall develop high technological insurance
for industries such as aviation, space flight, bio-medicine and etc., and provide risk guaranty for independent innovations. We shall
steadily develop consumption credit guaranty insurance for houses and automobiles and etc., and promote the consumption growth. We
shall actively propel insurance business in the fields of construction project, project financing and etc., support and develop export
credit insurance, so as to promote foreign trade and investment. We shall make great efforts to develop various property and life
insurance products that meet the demands of the people of different classes, different occupations and in different areas, optimize
product structure and broaden the service scope.
We shall utilize modern information technology to increase the content of science and technology of insurance products, develop new
service methods such as online insurance and etc., and advance the service level comprehensively. Enhance the insurance actuarial
capacities, and determine the insurance premiums rate scientifically. We shall endeavor to make insurance clauses exoteric and insurance
service normative, and we shall reinforce the education and trainings of insurance sales staff so as to advance the sales service
level. We shall fully exert the positive functions of insurance intermediary institutions in insurance underwriting, claim handling,
risk management, product development, and etc. so as to provide more professional and convenient insurance services. And we shall
speed up the development of reinsurance industry reinsurance business, and promote the coordinative development of reinsurance market
and direct insurance market. We shall make overall plans on regional development of the insurance industry, and advance the insurance
service level in minority areas and under-developed areas.
We shall encourage the development of professional insurance agents in the fields of commercial endowment insurance, health insurance
and liability insurance and etc. We shall support the development of qualified insurance agents into insurance share-controlling
(group) companies with international competitive strength , through restructuring, merger, or acquisition and etc. Additionally,
we shall steadily carry out the experiments in comprehensive operation of insurance agents, explore wider and deeper cooperation
between the insurance industry and the banking or securities industry, so that multiple and comprehensive financial and insurance
services could be provided.
VII.
Advance the level of utilization of insurance funds, support the construction of national economy, deepen the reform of the insurance
fund utilization system, propell the professional, regularized and market-based operation of insurance funds, and advance the level
of utilization of insurance funds. Establish an effective risk control and pre-warning mechanism, adopt comprehensive risk management
and guarantee the safety of assets.
Insurance asset management companies shall erect the consciousness of long-term investment, and earnestly well manage insurance assets
according to the requirement of unifying safety, liquidity and profitability. Qualified insurance asset management companies shall
be allowed to stepwise enlarge the scope of asset management, and explore a mechanism for independent trusteeship of insurance funds.
On the premise that the risks are controllable, direct and indirect investment of insurance funds into capital market should be encouraged
so as to stepwise increase the investment proportion, steadily enlarge the scale and varieties of asset-backed securities invested
with insurance funds and carry out experiments on investing insurance funds into real property and venture capital enterprises. Insurance
funds being converted into shares of commercial banks or being invested overseas should be supported. According to the demand of
national economy development continuously broaden the channels and scope of utilization of insurance funds, and fully exert the advantages
of long term and stability of insurance funds, so as to provide fund supports to national economy construction.
VIII.
Deepen the system reform, advancing the level of opening up and intensifying the capacity of sustainable development.
We shall further improve the management structure of insurance agents, regulate the powers and duties of shareholders’ meetings, boards
of directors, boards of supervisors and managers, and form a balancing mechanism between the authority institution, the decision-making
institution, the supervisory institution and the managers. We shall strengthen the construction of internal control system and the
risk management, reinforce the management and control responsibilities of legal entities, improve and fulfill the system of investigating
insurance management liability. We shall transform the operation mechanism, establish a scientific assessment system and explore
normative stock right-based, option-based and other incentive mechanisms. Furthermore, we shall implement the strategy of revitalizing
the industry by depending on talented people, deepen the reform of the system on talented people, optimize the structure of talented
people, and construct a high-quality group of talented people.
We shall make overall plans on domestic development and opening up, make full use of two markets and two resources, and enhance the
competitive strength and developing capacity of insurance industry under the conditions of all-round opening up . We shall earnestly
perform the commitments of China for accession to the WTO, promote Chinese and foreign insurance agents to exploit their respective
advantages for mutual benefits, to cooperate with each other for a win-win situation and to develop together. Additionally, we shall
support qualified domestic insurance agents to set up business institutions outside the territory of China, to provide insurance
services for the strategy of “Going Out”. Furthermore, we shall extensively develop international insurance exchanges, and actively
participate in making international insurance rules. We shall intensify the cooperation with overseas institutions especially with
the insurance supervision institutions of surrounding countries and regions, and reinforce trans-territorial insurance business supervision.
IX.
Strengthen and improve the supervision and management, as well as preventing and eliminating risks.
We shall persist in making the prevention of risks as the lifeline for the healthy development of insurance industry, and continuously
improve the modern insurance supervision system supported with repayment capacity, corporate governance structure and market-based
acts supervision. We shall also strengthen the supervision and management on repayment capacity, establish a dynamic repayment capacity
supervision index system, improve the actuarial system, and unify financial statistical indicators and performance evaluation standards.
By referring to the international practices, we shall study and formulate accounting rules in light of the features of the insurance
industry, guarantee the accounting data to be true, timely and transparent, and improve the scientificity and sanction of the supervision
on repayment capacity. In addition, we shall deeply propel the supervision on the governance structure of insurance agents, regulate
connected transactions, reinforce the disclosure of information and improve transparency. At the same time, we shall reinforce the
supervision on market-based acts, enhance on-site and off-site inspections, severely investigate and punish the illegal and rule-breaking
acts in insurance business, and improve the pertinence and validity of the supervision on market-based acts.
We shall, pursuant to the requirements of being highly standardized and being regularized, intensify insurance market accession and
establish a market-based withdrawal mechanism, and shall implement classified supervision, support the superior and restrict the
inferior. As well, we shall improve the capital supplement mechanism in the insurance industry, and shall improve the insurance guaranty
fund system, and stepwise realize the market-oriented and professional operation. Otherwise, we shall establish and improve the information
system for insurance supervision and improve the efficiency of supervision.
We shall regulate the insurance organization forms of self-managed industrial insurance, mutual cooperation insurance and etc., rectify
and regulate the conducts of launching insurance by industries or enterprises themselves, and make them subject to uniform insurance
supervision. In addition, we shall study and stepwise execute the consolidated supervision over the insurance share-controlling (group)
companies, and shall improve the supervision and coordination mechanism between the insurance industry and other financial industries,
prevent financial risks from being shifted between different industries and maintain the economic and financial safety of the state.
We shall speed up the construction of the insurance credit system, and cultivate the culture of insurance honesty and credibility.
We shall reinforce the honesty and credibility education of practitioners, intensify the mechanism of punishment on dishonesty, and
earnestly resolve the problems of misleading acts and difficulties in dealing with compensations. In addition, we shall reinforce
the construction of self-disciplinary organizations in the insurance industry, establish a mechanism for rapid settlement of insurance
disputes, and earnestly protect the lawful rights and interests of the insured.
X.
Further improve regulations and policies, and construct a good developing environment.
In order to accelerate the reform and development of the insurance industry, we shall persist in exerting the basic functions of the
market in the allocation of resources, and on the other hand strengthen the macro-control and policy guidance by the governments,
and strengthen the potence in policy supports. We shall, on the basis of the character of different kinds of risks and according
to the principle of differentiated treatment, explore proper tax preferences for policy-based insurance business involving national
interest and people’s livelihood, and encourage the masses and enterprises to buy insurances actively. In addition, we shall, in
light of the situation of China and in combination with the taxation reform, improve and promote the taxation policies for development
of the insurance industry. Furthermore, we shall continue improving the policies and measures on the practice of insurance sales
staff and on guaranty of their interests. We shall establish an insurance system for the risks of huge disasters, which is supported
by the state finance, amend and improve the insurance law, accelerate the construction of agricultural insurance laws and regulations.
We shall study and propel the legislation in aspects of commercial endowment, health insurance, liability insurance, insurance asset
management and etc., and improve the system of insurance regulations and rules. We shall include insurance education into high school
and primary school courses, exert the obverse propagandizing and guiding functions of the news media, disseminate insurance knowledge,
and enhance people’s consciousness on risks and insurance.
All regions and all departments should fully recognize the important significance of accelerating the reform and development of the
insurance industry, intensify the communication, coordination and cooperation, endeavor to learn insurance, understand insurance
and use insurance, and enhance the capacities of utilizing the insurance mechanism to promote the construction of a harmonious socialistic
society. We shall include the insurance industry into the local or industrial development planning for overall consideration, earnestly
carry out all the regulations and policies, and create a good environment for the reform and development of the insurance industry.
The administrative sectors should persist in exercising the administrative powers according to law, and earnestly maintain the management
autonomy as well as other lawful rights and interests of insurance enterprises. The CIRC shall continue enhancing its capacities
and level in leading the development of the insurance industry and the prevention of risks, earnestly perform its duties, strengthen
classified guidance and propel the fulfillment of policies. Through the common efforts of the whole society, we shall realize the
rapid and healthy development of insurance industry, so as to promote the construction of a harmonious socialistic society.
The State Council
June 15, 2006
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