BEIJING (Reuters) – China said on Wednesday it would direct major state insurers and commercial insurance funds to increase their investments in the A-list stock market, in the latest move to boost a faltering stock market.
Under a plan jointly issued by six financial regulators, including the Securities Regulatory Commission, major state-owned insurance companies will be directed to increase the size and proportion of their investments in mainland-listed Chinese stocks and equity funds.
Regulators will carry out a long-term evaluation of the performance of state-owned insurance companies, with the annual return on equity not exceeding more than 30% of the evaluation, and at least 60% for a longer cycle of three to five years.
The plan comes as Chinese stocks start 2025 with significant losses due to fears that US President Donald Trump will impose huge tariffs on Chinese goods, increasing pressure on the already stagnant economy.
The plan will lead to increased investments by the National Social Security Fund and China’s pension funds in the stock market.
It will also guide mutual fund managers to steadily increase the size and proportion of equity funds under their management.
China has unveiled a series of measures to boost investor confidence and revive the stock market. Among measures to support capital markets over the past few months, authorities have implemented swap and re-lending plans totaling 800 billion yuan to purchase shares.
(Reporting by Ziyi Tang, Yukun Zhang and Ryan Wu; Editing by Jacqueline Wong and Alison Williams)
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