The National Financial Regulatory Administration has formulated and issued the 'Guidelines for Internal Control Applications of Insurance Fund Utilization (No. 4 - No. 6)', mentioning that when insurance companies engage in Private Equity, real estate investment, and financial product investments, they must at least pay attention to risks such as asset-liability mismatches, credit risk, market risk, liquidity risk, legal compliance risk, and operational risk.

In addition, insurance companies should follow relevant laws, regulations, and regulatory requirements to establish a control mechanism for associated transactions that covers the underlying assets, fulfill responsibilities for the approval and disclosure of associated transactions, and reporting duties, to prevent Shareholders, actual controllers, Directors, supervisors, and senior management from using associated transactions to harm the interests of the company. Insurance companies must not use direct or indirect Private Equity investments as a channel to circumvent regulatory requirements and illegally provide financing to associated parties or designated parties.

At the same time, insurance companies should establish a clear division of decision-making and authorization systems, rigorous and efficient Business operation processes, comprehensive risk management systems, risk warning and handling systems, and accountability systems to fully leverage the role of the three lines of defense in monitoring, with relevant functional departments closely cooperating and issuing independent opinions. Additionally, the allocation ratio of Private Equity investments should be reasonably set based on regulatory requirements, investment needs, liability characteristics, solvency, risk appetite, asset-liability management, investment management capabilities, and risk management capabilities, while fulfilling corresponding internal approval procedures.