Beijing launches the development and application of commercial insurance for intelligent connected new energy vehicles; the demonstration interest rate for dividend insurance is planned to be lowered to 3.5% | Financial Morning Briefing

|March 30, 2026 Monday|

**NO.1 **State Administration of Foreign Exchange: In 2025, China’s external debt remained at a manageable level with a slight decline in scale

On March 27, Li Bin, Deputy Director of the State Administration of Foreign Exchange and spokesperson for press releases, answered questions from reporters regarding China’s external debt data at the end of 2025. Li Bin stated that the overall risk of China’s external debt is controllable. By the end of 2025, China’s external debt ratio was 11.9%, the debt service ratio was 56.3%, the debt repayment ratio was 6.2%, and the ratio of short-term external debt to foreign exchange reserves was 39.2%. All these indicators are within internationally recognized safety limits, indicating that China’s external debt risk is generally manageable.

Commentary: As of the end of 2025, all key indicators of China’s external debt remained within international safety thresholds. Core metrics such as liability ratio, debt service ratio, and debt repayment ratio showed stable performance, demonstrating that the overall external debt risk is under control. In the context of ongoing external uncertainties, a debt structure with sufficient safety margins provides greater flexibility for macroeconomic policy adjustments, helping to stabilize market expectations.

**NO.2 **Beijing launches commercial insurance development and application for intelligent connected new-energy vehicles

On March 29, the Beijing Financial Regulatory Bureau announced during the “Major Achievements” session at the 2026 Zhongguancun Forum annual conference that it has initiated the development and application of commercial insurance for intelligent connected new-energy vehicles. The new product will largely follow the existing commercial auto insurance framework for new-energy vehicles. Based on the principle of “overall stability with some optimization,” it will mainly provide risk coverage for specific intelligent driving scenarios and hardware/software damage concerns that matter to consumers and automakers. It will be compatible with all levels of intelligent connected new-energy vehicles from L2 to L4.

Commentary: This marks a significant step for the insurance industry to support new productive forces and accelerate the development of the intelligent connected vehicle sector. However, vehicle owners should recognize that “intelligent driving insurance” is not equivalent to “all-purpose insurance,” and auxiliary driving features should only be used when safety is assured. Insurance can help reduce the economic burden of compensation but cannot replace legal liability responsibilities.

**NO.3 **The demonstration interest rate for dividend insurance is planned to be lowered to 3.5%

According to a report by Shanghai Securities News, the life insurance industry has reached a consensus to lower the demonstration interest rate for dividend insurance further to 3.5%, aiming to prevent sales misguidance and interest spread risks. The demonstration interest rate is the assumed rate used by insurers when illustrating future benefits for dividend insurance products. Currently, the highest demonstration rate for dividend insurance is 3.9%.

Commentary: Industry consensus has been reached on prudently setting dividend levels to maintain a relatively stable dividend realization rate. This approach helps reflect the true investment performance of insurance companies and guides reasonable expectations among consumers, reducing sales misrepresentation and the pressure of “guaranteed returns” expectations.

**NO.4 **Multiple state-owned major banks release their 2025 performance reports

On March 27, ICBC, CCB, and Bank of Communications disclosed their 2025 operating results. During the reporting period, ICBC’s operating income exceeded 800 billion yuan, with non-interest income increasing by 11.8%, and net profit surpassing 370 billion yuan, up 1.0% year-over-year. CCB’s operating income was 7,408.71 billion yuan, up 1.69%, with a net profit of 339.790 billion yuan, up 1.04%. Bank of Communications achieved full-year operating income of 265.071 billion yuan and net profit attributable to shareholders of 95.622 billion yuan, increasing by 2.02% and 2.18%, respectively.

Commentary: In 2025, ICBC, CCB, and Bank of Communications all posted positive growth in both operating income and net profit. Notably, ICBC’s non-interest income growth was impressive, reflecting successful expansion into diversified businesses such as wealth management and investment banking amid narrowing net interest margins. Although net profit growth was modest at around 1% to 2%, this remains a solid performance given the complex economic environment.

**NO.5 **China Everbright Bank: The qualification for Wang Yongqi to serve as vice president has been approved

On March 27, China Everbright Bank announced that it received the “Approval from the National Financial Regulatory Administration for Wang Yongqi’s qualification to serve as vice president of China Everbright Bank.” The administration approved Wang Yongqi’s appointment on March 24, 2026.

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