China's financial regulators have developed a set of measures aimed at stimulating the activity of large state-owned mutual funds and insurance companies to buy shares. These actions are dictated by Beijing's desire to strengthen the position of the national stock market against the background of its decline and decrease in bond yields. In particular, state insurance companies are required to increase both the volume and the share of their investments in stocks listed on the mainland. According to a statement by Wu Qing, chairman of the Chinese Securities Market Regulatory Commission, insurance companies have been instructed to allocate at least 30% of new premiums for the purchase of shares. In addition, the pilot project is expected to start in the first half of the year, with insurers expected to invest at least 100 billion yuan ($13.75 billion) in long-term stocks. It is expected that as the program is implemented, its scope will increase. In addition, mutual funds are also expected to annually increase the amount of capital invested in stocks on the mainland market. According to forecasts, over the next three years, these investments should show an increase of 10%, taking into account the market value of assets.
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