BEIJING (Reuters) – China said on Wednesday it would encourage large state-owned insurers and commercial insurance funds to increase investment in the A-share market, in a latest move to boost its stock market late.
Under a plan jointly released by six financial regulators, including the securities regulator, major state-owned insurance companies will be required to increase both the size and proportion of their investments in Chinese stocks listed on the continent and in equity funds.
Regulators will implement long-term performance assessment for public insurance companies, with annual return on equity accounting for no more than 30% of the assessment, and at least 60% for a longer cycle of three at five years old.
The plan comes as Chinese stocks began 2025 with heavy losses amid concerns that U.S. President Donald Trump could impose heavy tariffs on Chinese goods, putting additional pressure on an already sluggish.
The plan will increase investments by China’s National Social Security Fund and pension funds in the stock market.
It will also guide mutual fund managers in steadily increasing the size and proportion of equity funds under their management.
China has unveiled a series of measures to boost investor confidence and revive its stock market. Among measures to support capital markets in recent months, authorities have implemented swap and loan programs totaling 800 billion yuan for stock purchases.
(Reporting by Ziyi Tang, Yukun Zhang and Ryan Woo; editing by Jacqueline Wong and Alison Williams)
