China plans to encourage large state insurers and commercial insurance funds to increase their investments in share markets to perk up the country's sluggish stock markets.
According to a report by Reuters the plan that has been jointly released by six financial regulators, guides the insurers and the insurance funds to increase investments in A grade shares and raise both the size and proportion of their investments in listed Chinese stocks and equity funds.
The regulators will also implement a long-term performance evaluation scheme for the state-owned insurance companies. The annual return on equity weighted no more than 30% of the evaluation, and at least 60% for a longer three-to-five-year cycle.
The plan is targeted to increase the investments of China's National Social Security Fund and pension funds into the stock market. Mutual fund managers too would be similarly guided to steadily increase both the size and proportion of equity funds under their management.