China to Raise Insurance Funds’ Stock Investment Limit to Support Capital Markets

Beijing (Reuters) — China’s financial regulator has announced plans to raise the equity investment limit for insurance funds, in a move aimed at strengthening the capital markets and boosting the real economy.

According to a statement issued Tuesday by the National Financial Regulatory Administration (NFRA), the upper limit of equity asset allocation for certain insurers will be increased by approximately 5%. The regulator stated that the measure will “expand the space of equity investment and provide more equity capital for the real economy.”

The move comes as part of broader efforts by Chinese authorities to stabilize the domestic stock market, which has faced persistent downward pressure, partly due to the impact of recent U.S. tariff actions. In response, several state-owned holding companies have pledged to ramp up share purchases to help support the market.

Additionally, the NFRA confirmed that insurance funds will be permitted to increase their investments in venture capital funds, aiming to channel capital into strategic emerging industries and foster innovation-led growth.