China raises equity investment cap by insurance funds

Written by Adam Cadle

09/04/2025

China's financial regulator, the National Financial Regulatory Administration (NFRA), has raised the upper limit of insurance funds' equity asset allocation ratio by five percentage points.

Insurance funds can now invest 10% to 50% of their total assets in the capital market, based on their solvency ratio.

The move aims to expand insurance funds' investment channels, inject more capital into the real economy, encourage greater support for equity investment in strategic emerging industries, and foster new quality productive forces, the NFRA noted.

After the release of the NFRA's notice, the five major insurance companies listed in the Chinese mainland expressed long-term optimism toward the Chinese capital market and announced plans to increase their investment. Among them, China Pacific Insurance Group said it plans to launch a share buyback scheme.

The notice also mentioned China's commitment to increasing the concentration ratio of investment in venture capital funds and relaxing the oversight requirements for tax-deferred pension products.

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