China unveils plan to encourage insurance coverage funds | finance news
BEIJING (Reuters) – China mentioned on Wednesday it can information large state insurers and business insurance coverage funds to increase investments within the A-share market, in a latest transfer to spice up its lagging stock market.
Underneath a plan collectively launched by six financial regulators together with the securities regulator, large state-owned insurance coverage firms shall be directed to raise each the dimensions and proportion of their investments in Chinese language shares listed on the mainland and equity funds.
The regulators will implement a long-term efficiency analysis for state-owned insurance coverage firms, with the annual return on equity weighted no more than 30% of the analysis, and at the least 60% for a longer 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 more strain on an already sluggish economic system.
The plan will increase the investments of China’s Nationwide Social Safety Fund and pension funds into the stock market.
It is going to additionally information mutual fund managers to steadily increase each the dimensions and proportion of equity funds below their management.
China has unveiled a slew of measures to spice up investor confidence and revive its stock market. Amongst measures to help capital markets over the previous few months, authorities have rolled out swap and relending schemes totalling 800 billion yuan for stock purchases.
(Reporting by Ziyi Tang, Yukun Zhang and Ryan Woo; Enhancing by Jacqueline Wong and Alison Williams)
Keep up to date with the latest news within the finance markets! Our web site is your go-to source for cutting-edge finance news, market trends, insights, and updates on key assets. We offer each day updates to make sure you have entry to the freshest info on commodity actions, industry efficiency, provide and demand shifts, and main market bulletins.
Discover how these trends are shaping the long run of international commodities! Go to us usually for probably the most participating and informative content material by clicking right here. Our rigorously curated articles will keep you knowledgeable on market shifts, investment methods, commodity evaluation, and pivotal moments within the world of assets.
