China Implements Major Measures to Boost Domestic Stock Market

Regulators direct insurance and pension funds to increase investments in A-shares, aiming to stabilize markets and support economic recovery.

Chinese financial regulators announced a plan requiring insurance companies to allocate 30% of new premium revenues to domestic stocks starting in 2025.
Mutual funds are mandated to increase their equity holdings by 10% annually over the next three years to strengthen market participation.
A pilot program will channel at least 100 billion yuan ($13.75 billion) from insurers into long-term stock investments in the first half of 2025, with plans for expansion.
The National Social Security Fund and pension funds will also increase their equity investments, with updates to performance evaluation frameworks to encourage long-term holdings.
The measures aim to counter economic challenges, including sluggish consumer demand and market volatility, while addressing concerns over U.S. tariff threats under President Trump's administration.