On July 2, CIRC issued the Notification of Issues on Launching Employee Stock Ownership Plan in Insurance Institution (hereinafter “the Notification”) to provide an enforcement regulation for building a benefit-sharing system between stockholders, insurance institutions and employees. In accordance with provisions in the Notification, insurance institutions launching ESOP shall have sound business foundation, and steady management structure, salary system and financial condition. The said institutions shall have been in continuous operation for no less than 3 years, and remain profitable in the former year of the launch of the Plan. In the meantime, the Notification provides that such innovative institutions as insurance asset management companies and specified internet insurance companies shall be exempted from the requirement of continuous operation time. By principle, targeted participants of ESOP shall be regular employees who have been in the institution for over 2 years, including management, business mainstays and professional technical personnel. With regard to financial source, the needed capital shall be from salary and other legal income of personnel; In respect of shareholding ratio, ESOP shall hold a quantity of valid stocks and funds of no more than 10% of total share capital of company, and shall not be the biggest shareholder of the company. Individual employee shall hold less than 1% of stocks; The total amount of valid stocks and funds held by ESOP of innovative institutions, e.g. insurance asset management company and specified International insurance company, etc., shall not exceed 25% of total share capital of the company; Individual employee shall hold less than 5% of stocks.

解析：党的十八届三中全会提出“允许混合所有制经济实行员工持股，形成资本所有者和劳动者利益共同体”。员工持股可以把企业利益和员工利益进行有效的捆绑，建立保险机构和员工的利益共享机制，提高员工的劳动积极性，提升公司的凝聚力和行业竞争力。
Interpretation: The Third Plenary Session of the 18th CPC Central Committee proposed that “employee stock ownership in mixed sector of the economy shall be permitted to form an interest community of capital owners and laborers”. Employee stock ownership will result in effective binding of corporate interest and employee interest, build an interest-sharing system between insurance institutions and their employees, improve working enthusiasm of employees, and enhance cohesion and industrial competitiveness of company.

员工持股也是建立现代保险企业制度的需要。相对于事后的检查，员工持股作为事中的激励与约束机制，可以影响与监督核心管理者的行为。同时，它在一定程度上缓解了“一股独大”的问题，可以有效优化公司治理结构。
In fact, employee stock ownership is necessary for the establishment of modern insurance enterprise system. As an inward incentive and restrictive mechanism, employee stock ownership will influence and supervise the behavior of core management compared to inspections afterwards. In the meantime, it resolves the issue of “one share being overwhelmingly big” to some extent, and effectively optimizes the management structure of company.