The Financial Supervisory Commission issued the interpretative letter on Article 2 of the Regulations Governing Use of Insurer’s Funds in Special Projects, Public Utilities and Social Welfare Enterprises, Ref. No. Jin-Guan-Bao-Cai-Zi No. 10610908021 dated 21 March 2017. Relevant rules are explained as follows:

 

1.      Use of insurer’s funds in special projects for investments in the following projects in "other use in line with government policies" mentioned in Subsection 6 of Article 2 of the "Regulations Governing Use of Insurer’s Funds in Special Projects, Public Utilities and Social Welfare Enterprises" (the "Regulations") formulated in accordance with Paragraph 1 of Article 146-5 of the Insurance Act:

 

(1)   Green Energy Technology: solar photovoltaic industry, LED lighting industry, general potential industry (hydrogen and fuel cell, energy information and communication technology, biofuel, wind power generation and electric vehicle).

 

(2)   Silicon Valley: "promote loT (Internet of Things) innovation" and "strengthen the startup and entrepreneurship ecosystem" as the two main axes in loT industry, including sensors, delivery network, data collection and application service.

 

(3)   Biotechnology: including biotechnology and pharmaceutical industry and health and wellness industry. Biotechnology and pharmaceutical industry covers three main areas: applied biotechnology industry, pharmaceutical industry and medical equipment industry. Health and wellness industry covers areas such as health promotion and wellness-health.

 

(4)   National Defense: industries whose products or services meet the requirements of national defense, primarily in aerospace, navy ship construction and cyber security.

 

(5)   Smart Machinery: integration of AI technology elements (such as: robot, IoTs, big data, virtual reality integration, lean management, 3D printing, sensors, etc.) to possess fault prediction, precision compensation, automatic parameter setting, auto scheduling or other intelligent functions.

 

(6)   New Agriculture: agriculture, forestry, fishery and its processing and manufacturing, services, machinery and equipment manufacturing, machinery and equipment leasing, wholesale etc.

 

(7)   Circular Economy: industry of integrated energy supply and waste recycling, including recycling and converting waste materials into recycled products, replacement of raw materials and reverse resources for recycling and reuse by raw material supplier.

 

2.      Investment by insurers in the items listed in the preceding paragraph whose investment object is public utilities or social welfare enterprises shall be according to the relevant provisions of the article.