Chinese Stocks See Modest Gains Amid Investment Plan For Insurers

Chinese stocks edged up slightly with support from the financial sector, reacting to Beijing's new plans for insurers to invest in mainland shares. The measures buoyed market sentiment temporarily but uncertainties from U.S. tariff threats lingered. Analysts noted potential benefits for certain large-cap stocks.

Chinese stocks showed modest increases on Thursday, primarily driven by the financial sector. Meanwhile, Hong Kong shares dropped, as investors assessed Beijing's latest directive for insurance companies to invest more in mainland shares.

This plan is aimed at bolstering the stock market, with directives issued by six financial regulators, including the China Securities Regulatory Commission, advocating for significant investments by state-owned insurers into Chinese A-shares and equity funds.

Despite the immediate positive response, ongoing concerns about U.S. tariffs and domestic economic performance diminished enthusiasm. Experts noted that the new investments might favor stable, large-cap companies, with some caution persisting among investors.

(With inputs from agencies.)