China’s NAFR relaxes rules for insurers to invest in stock markets

Written by Adam Cadle

18/09/2023

China’s new financial regulator, the National Administration of Financial Regulation (NAFR), has reduced the risk weighting it attaches to insurance companies’ holdings of blue-chip shares and tech stocks, encouraging them to invest more in the country’s lagging stock market.

The NAFR said that the risk weighting for CSI300 Index constituents would be reduced to 0.3 from 0.35, while that for stocks listed on Shanghai’s tech-focused STAR Market would be cut to 0.4, from 0.45.

Furthermore, the risk weighting it assigns to investments in Real Estate Investment Trusts (REITs).

It also set a relatively low-risk weighting for private equity investments in China's strategic and emerging sectors.

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