China is set to allow an additional 60 billion yuan (US$8.3 billion) from long-term insurance funds to be invested in equities as part of an expanded pilot program. This move, announced by Li Yunze, head of China’s top financial regulator, at a press briefing, aims to deepen capital market participation and is part of Beijing’s broader efforts to shore up financial stability and revive confidence across key sectors.
The expanded insurance investment scheme is a key component of ongoing capital market reforms and reflects a wider policy shift to support economic resilience amid persistent growth and market pressures. Authorities are also preparing new initiatives to stabilize the country’s troubled property sector.
This development comes as part of a series of measures aimed at supporting the economy. Earlier monetary policy adjustments included rate cuts by the People’s Bank of China, such as reducing the 7-day reverse repo rate to 1.4% from 1.5% and cutting the Loan Prime Rate (LPR) by 10 basis points. The Reserve Requirement Ratio (RRR) was also cut by 50 basis points.
The measures announced, including the expanded insurance investment program and anticipated property sector support, demonstrate China’s commitment to bolstering its financial markets and economic stability. The government has also promised additional support for A-share listed companies affected by tariffs and further local stock market support from the sovereign fund.
