Chinese insurers have lifted their equity holdings to the highest level in more than three years, responding to Beijing’s push to support a steady bull market. Report comes via Bloomberg.
- Regulatory data show holdings rose by 640 billion yuan ($90 billion) in the first half of 2025 to 3.1 trillion yuan, or 8.5% of total assets.
- Brokerages expect inflows to continue, with Morgan Stanley projecting over 1 trillion yuan of purchases into Chinese and Hong Kong equities this year alone.
Analysts say long-term insurance flows are deepening liquidity, favouring dividend payers and sector leaders, while helping stabilize valuations.
- Authorities have supported the trend by easing equity investment caps, raising allocation requirements, and reducing capital charges.
- Strategists see flows continuing through 2026, though greater exposure could amplify volatility in downturns.
- Still, with low bond yields and regulatory backing, insurers are expected to remain a key anchor for Chinese equities.
