Shanghai Stock Exchange official data

China Mandates 30% of Insurers' Premiums and 10% Annual Increase by Mutual Funds for Stock Market Boost

Jan 23, 2025, 02:27 AM

China has unveiled a comprehensive plan to bolster its stock market by encouraging the influx of medium- and long-term funds. The initiative, announced by the China Securities Regulatory Commission (CSRC) and five other financial regulators, includes directives for mutual funds to increase their holdings of mainland-listed equities by at least 10% annually over the next three years. Additionally, large state-owned insurance companies are mandated to allocate 30% of their new annual premiums to A-share investments starting in 2025. The plan also involves the implementation of a second phase of long-term stock investment pilots for insurance funds, with a scale of no less than 100 billion yuan ($13.7 billion) in the first half of 2025. These measures aim to channel hundreds of billions of yuan into the market annually, stabilizing it and enhancing investor confidence amidst ongoing economic challenges.