China’s financial regulator is set to increase the limits on how much insurance funds can invest in the stock market. This move aims to bolster support for capital markets and the broader economy. The National Financial Regulatory Administration announced that the upper limit for the equity asset allocation ratio for some insurers will rise by about 5%.
This adjustment is designed to open up more opportunities for equity investment, providing additional capital to support the real economy. The government has been working hard to stabilize the stock market, which has seen significant declines partly due to U.S. tariff actions. In response, several state-owned companies have pledged to enhance their investments in shares.
Additionally, the regulator will allow insurance funds to increase their investments in venture capital funds. This step is intended to channel more money into emerging industries that are considered strategic for the country’s future.
This initiative reflects the government’s commitment to strengthen the financial system and stimulate economic growth during challenging times.