HomeBusinessChina unveils plan to boost insurance funds into stock markets

China unveils plan to boost insurance funds into stock markets

BEIJING (Reuters) – China said on Wednesday it will guide major state insurers and commercial insurance funds to increase investment in the A-share market, in a latest step to boost the lagging stock market.

Under a plan jointly released by six financial regulators, including the securities regulator, major state-owned insurers will be ordered to increase both the size and proportion of their investments in mainland-listed Chinese stocks and equity funds.

The regulators will implement a long-term performance evaluation for state-owned insurance companies, with annual return on equity weighing no 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 have started 2025 with big losses on concerns that US President Donald Trump will impose heavy tariffs on Chinese goods, adding to pressure on an already sluggish economy.

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The plan will increase the investments of China’s National Social Security Fund and pension funds in the stock market.

It will also help mutual fund managers to steadily increase both the size and share of equity funds they manage.

China has unveiled a slew of measures to boost investor confidence and revive the stock market. Among measures to support capital markets in recent months, authorities have included swap and on-lending schemes totaling 800 billion yuan for stock purchases.

(Reporting by Ziyi Tang, Yukun Zhang and Ryan Woo; Editing by Jacqueline Wong and Alison Williams)

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