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E-mail Xinhua, April 8, 2025
China's financial regulatory authority on Tuesday announced measures to raise the cap on equity investments by insurance funds.
The adjustment, outlined in a circular issued by the National Financial Regulatory Administration, aims to broaden investment channels for insurance funds and inject more equity capital into the real economy.
The upper limit of the equity asset allocation ratio was raised by 5 percentage points for certain insurers, according to the circular. It also encouraged greater support for equity investments in the country's strategic emerging industries and fostering new quality productive forces.
The administration said it will continue to refine regulations on insurance fund utilization to enhance the sector's role as a source of long-term, patient capital for the country's economic and social development.
Following the policy announcement, several major insurers, including China Life Insurance, China Pacific Insurance, and New China Life Insurance, voiced strong support, expressing confidence in China's economic outlook and capital market.
They pledged to ramp up long-term equity investments, with a focus on strategic emerging industries, contributing patient capital to market stability and the growth of new quality productive forces.
In the face of global financial turbulence, China has unveiled a series of swift and intensive measures aimed at stabilizing the capital markets and restoring investor confidence. Some state-owned capital operation firms moved quickly to increase their holdings of domestic equities.
