China Guides Mutual Funds, Insurers to Invest More in Stocks

China is guiding local mutual funds and insurers to boost their stock purchases in the government’s latest initiative to shore up its ailing equity market as it confronts the threat of higher tariffs.

Mutual funds should raise their holdings of onshore equities by at least 10% annually for the next three years, while large state-owned insurers will need to invest 30% of their new policy premiums from 2025, Wu Qing, chairman of the China Securities Regulatory Commission, said at a press conference on Thursday.