China unveils plan to encourage insurance coverage funds into inventory markets

BEIJING (Reuters) – China mentioned on Wednesday it is going to information huge state insurers and industrial insurance coverage funds to extend investments within the A-share market, in a contemporary transfer to spice up its lagging inventory market.

Beneath a plan collectively launched by six monetary regulators together with the securities regulator, huge state-owned insurance coverage firms will likely be directed to boost each the dimensions and proportion of their investments in Chinese language shares listed on the mainland and fairness funds.

The regulators will implement a long-term efficiency analysis for state-owned insurance coverage firms, with the annual return on fairness weighted not more than 30% of the analysis, and a minimum of 60% for an extended three-to-five-year cycle.

The plan comes as Chinese language shares kicked off 2025 with deep losses on worries that U.S. President Donald Trump will impose hefty tariffs on Chinese language items, heaping extra stress on an already sluggish financial system.

The plan will improve the investments of China’s Nationwide Social Safety Fund and pension funds into the inventory market.

It should additionally information mutual fund managers to steadily improve each the dimensions and proportion of fairness funds below their administration.

China has unveiled a slew of measures to spice up investor confidence and revive its inventory market. Amongst measures to assist capital markets over the previous few months, authorities have rolled out swap and relending schemes totalling 800 billion yuan for inventory purchases.