China urges insurers to invest billions to support struggling stock market

Written by Adam Cadle

23/01/2025

China is to guide large state insurers and commercial insurance funds to channel hundreds of billions of yuan of investment into shares as part of the Government’s efforts to support its struggling stock market.

The country’s six financial regulators including the securities regulator announced the plan on Wednesday.

China Securities Regulatory Commission (CSRC) head, Wu Qing, said authorities will call on insurers to invest at least 100 billion yuan of long-term funds into stocks in the first half of this year.

The regulators will encourage big state insurers to invest 30% of new annual premiums in A-shares, and encourage mutual funds to increase their A-share holdings’ tradable market value by at least 10% annually over the next three years.

The plan also involves guiding mutual fund managers to increase investments in their own equity products, cut fund sales fees and promote the development of exchange-traded fund products.

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