China Boosts Insurance Investment in Stock Market

China's financial regulator plans to allow insurance funds to invest more in the stock market. This move aims to bolster support for the capital market and real economy by raising the equity asset allocation limit and increasing investment concentration in venture capital funds.

In a strategic move by China's financial regulator, the proportion of insurance funds permitted to invest in the stock market is set to rise. This decision forms part of broader efforts to invigorate both the capital market and the real economy.

The financial authorities announced an increase in the upper limit for equity asset allocation ratios. Additionally, they plan to enhance the concentration of investments in venture capital funds, a decision reflecting a calculated effort to boost economic activity.

These regulatory adjustments are expected to provide a significant lift to the Chinese stock market and stimulate growth in various sectors of the economy, as insurance funds play a larger role in funding entrepreneurial ventures and market activities.

(With inputs from agencies.)