China to channel "a whole bunch of billions of yuan" yearly from insurers into equities

China has unveiled a serious initiative to channel a whole bunch of billions of yuan yearly from state-owned insurers into equities, marking the most recent effort by authorities to stabilize and assist the nation’s inventory markets.

Wu Qing, head of the China Securities Regulatory Fee (CSRC), introduced that within the first half of 2025, insurers might be required to take a position a minimum of 100 billion yuan ($13.75 billion) in long-term inventory holdings.

• the regulator will encourage each state-owned and industrial insurers to allocate 30% of latest annual premiums into A-shares
• mutual funds will even be urged to spice up their tradable A-share holdings by a minimum of 10% yearly over the following three years

The initiative extends past direct investments, with fund managers inspired to increase fairness fund choices, scale back fund gross sales charges, and promote exchange-traded funds (ETFs) to draw extra capital into the market.

China’s CSI 300 blue-chip index, Shanghai Composite Index, and the Dangle Seng Index in Hong Kong all rose.

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Earlier posts on this:

• China to spice up long-term funds for fairness markets
• Chinese language official says 100s of bns of yuan to circulate into shares yearly from pensions

• China official says insurance coverage companies nonetheless have room to extend their market funding

• Chinese language equities leaping on all of the supportive new insurance policies

• PBOC says it will present liquidity instruments to fund share purchases “at correct time”

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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