Beijing unveils US$7.2 billion injection of insurer capital for stocks

China Pacific, Taikang Life and Sunshine Life among the firms putting ‘patient capital’ into A shares to help stabilise the market

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A worker stands on a crane as he installs red lanterns outside a park before the Lunar New Year celebrations in Beijing on January 24, 2025. Photo: Reuters

Published: 3:00pm, 27 Jan 2025

Beijing has unveiled a second list of insurance companies taking part in an initiative to stabilise and bolster the stock market by injecting long-term capital.

The National Financial Regulatory Administration (NFRA), an agency under the State Council that oversees the financial sector, has approved the second batch of long-term-equity investment pilot projects, worth 52 billion yuan (US$7.2 billion), state media reported on Sunday.

The list includes China Pacific Insurance, Taikang Life Insurance, Sunshine Life Insurance and relevant insurance asset-management companies, according to the reports.

These entities will participate in the pilot programme through contractual funds, a vehicle whereby the investment is managed according to predefined terms and objectives outlined in a contract. The insurers are expected to “leverage the role of long-term and patient capital to support the stable operation of the capital market”, the reports said.

The announcement follows an action plan issued last week by the country’s six financial regulators that called on institutional investors – including mutual funds, insurance companies, and social-security funds – to increase their holdings in Chinese stocks amid uncertainties at the start of Donald Trump’s second term as US president.

Last week, Trump threatened to impose tariffs on Chinese goods beginning next month and unveiled a plan to outpace China in the field of artificial intelligence.