China will make it easier for insurance companies to invest in domestic stocks, the latest in a string of measures aimed at bolstering market sentiment.
China’s National Administration of Financial Regulation has published new rules lowering the risk weighting of insurers’ investments in both the CSI 300 index (includes top 300 stocks traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange) and STAR-listed stocks (market showcasing some of China’s most promising tech companies).
Minimum capital requirements for insurers will also be lowered, the statement said.
The move aims to guide insurers to support capital market development and technological innovation, the statement said.
Last month, insurer executives, as well as the heads of the country’s pension fund and major banks, were also asked to step up support for the market.