China unveils plan to encourage insurance funds into stock markets

BEIJING – China said on Wednesday it will guide big state insurers and commercial insurance funds to increase investments in the A-share market, in the latest move to boost its lagging stock market.

Under a plan jointly released by six financial regulators including the securities regulator, big state-owned insurance companies will be directed to raise both the size and proportion of their investments in Chinese stocks listed on the mainland and equity funds.

The regulators will implement a long-term performance evaluation for state-owned insurance companies, with the annual return on equity weighted no more than 30% of the evaluation, and at least 60% for a longer three-to-five-year cycle.

The plan comes as Chinese stocks kicked off 2025 with deep losses on worries that US President Donald Trump will impose hefty tariffs on Chinese goods, heaping more pressure on an already sluggish economy.

The plan will increase the investments of China’s National Social Security Fund and pension funds into the stock market.

It will also guide mutual fund managers to steadily increase both the size and proportion of equity funds under their management.

China has unveiled a slew of measures to boost investor confidence and revive its stock market. Among measures to support capital markets over the past 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; Editing by Jacqueline Wong and Alison Williams)