China raises equity cap for insurers to boost real economy

The government also lifted the equity asset allocation ratio for certain insurers.

China’s financial regulator has raised the cap on equity investments by insurance funds, a move aimed at expanding investment channels and increasing equity capital in the real economy.

The National Financial Regulatory Administration said it had lifted the equity asset allocation ratio for certain insurers by five percentage points. 

The measure also encourages more investments in strategic emerging industries and sectors aligned with the country’s push for new productive forces.

The regulator said it will continue to refine rules governing insurance fund usage to support the sector’s contribution of long-term capital to the economy.