China Directs Pension Funds and Insurance Capital into A Shares to Stabilise Markets
Pension Funds Set to Stabilise Markets
The Chinese government is proactively directing pension funds and insurance capital into the nation's equities to stabilise its stock market. This initiative aims to enhance medium and long-term holdings within Asia's largest capital market.
Press Conference Insights
At a press conference in Beijing, Wu Qing, the Chairman of the China Securities Regulatory Commission, announced that starting this year, thirty percent of annual insurance premiums from new coverage policies will be invested in yuan-denominated A shares.
Investments Set to Increase
- Pension funds will boost their equity allocations by 10% annually over the next three years.
- Insurers currently hold 4.4 trillion yuan in the stock market, comprising about 12% of their total assets.
- A pilot program will see at least 100 billion yuan allocated to the stock market in the first six months, with approvals expected before the Lunar New Year.
The news has already impacted market sentiment, with the CSI 300 index rising by 1.1% early in the trading session.
Alongside Wu were notable financial figures including Deputy Finance Minister Liao Min and PBOC official Zou Lan, highlighting the significance of these measures. More updates to follow on this developing situation.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.