The FSC will soon issue the 2019 “Scope and Formulas for Calculating Equity Capital and Risk Capital of Insurance Enterprises”, which contains 3 major adjustments that apply to the calculation of capital adequacy ratio starting 2019, including (1) amendment of calculation of capital requirement when insurance companies invest in subordinated debts or preferred stock liabilities issued by a domestic insurance company or financial holding company; (2) correction of various assets risk factors and (3) addition of calculation of capital requirement for currency mismatch risk associated with related counterparties.