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China eases investment rules for insurers


China has unveiled measures to bolster market sentiment by allowing insurance companies easier access to domestic stock investments. China’s National Administration of Financial Regulation announced reduced risk weightings for insurers investing in CSI 300 Index members and stocks on the Star market. They will also slash the minimum capital requirements for insurers. These changes may accelerate insurers’ investments in the capital market, as highlighted by Wang Junhui, Chief Investment Officer of China Life Insurance Group Co. Despite recent efforts, such as lowering transaction costs and imposing sale restrictions on significant shareholders, market confidence remains shaky. The CSI 300 has seen a decline of 11% from its January peak, after a 22% drop in 2022. The primary objective is to drive insurers to champion capital market growth and tech innovation.

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