China tells insurance companies to invest in stock market

Beijing hopes to bolster the country’s struggling stock market by encouraging the insurance industry to invest more of its $2.65 trillion of assets in securities, Caixin reports.

The China Banking and Insurance Regulatory Commission (CBIRC) wants insurance firms to draw on their long-term funds to buy up stocks and bonds and invest more in specialized equity-investment products, a spokesperson for the regulator said Monday.

The Chinese government is taking steps to make it easier for insurance companies to invest in the capital markets, with a draft of new rules removing caps on insurance firms’ investments in equities currently open for public feedback. In October, the CBIRC allowed insurance firms to invest in stocks through specialized products.