China has unveiled a major drive to shift hundreds of billions of yuan annually from state-owned insurers to equity, marking the latest effort by authorities to stabilize the country's stock markets and support its give them
Wu Qing, head of the China Securities Regulatory Commission (CSRC), announced that in the first half of 2025, insurers must invest at least 100 billion yuan ($13.75 billion) in long-term stock holdings.
- the regulator will encourage both state and commercial property insurers to allocate 30% of new annual premiums to A shares.
- Mutual funds will be urged to boost their A-share trading holdings by at least 10% each year over the next three years.
The campaign extends beyond direct investments, with fund managers encouraged to expand equity fund offerings, reduce asset sales taxes, and promote exchange-traded funds (ETFs) to attract more capital into the market.
China's blue-chip CSI 300 index, the Shanghai Composite Index, and the Hang Seng Index rose in Hong Kong.
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