China’s insurers to invest $14bn in equities

Written by Adam Cadle

10/03/2025

China’s state-owned life insurers could inject over $14bn (CNY100bn) into the country’s equity markets if a Government directive requiring 30% of new premiums to be invested in stocks is fully implemented, new analysis by S&P Global Market Intelligence has revealed.

Authorities expect major state-owned insurers to begin allocating 30% of newly added insurance premiums to yuan-denominated equities starting in 2025.

Based on 2023 new business premiums, China Life Insurance Co. Ltd. would invest $8.85bn (CNY63.24bn), China Pacific Insurance (Group) Co. Ltd. $3.48bn (CNY24.86bn), The People’s Insurance Co. (Group) of China Ltd. $2.03bn (CNY14.50bn), and New China Life Insurance Co. Ltd. $1.72bn (CNY12.27bn).

Their solvency ratios stand at 218.5%, 257.0%, 250.7%, and 278.4%, respectively.

According to Sun Ting, chief analyst for the nonbank financial sector at Soochow Securities, if based on 2024 data, the estimated total fund allocation to yuan-denominated equities in 2025 from five state-owned life insurers—China Life, China Pacific Insurance, New China Life, People’s Insurance, and China Taiping Insurance Group Ltd.—could reach $56.57bn (CNY404.1bn).

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