China urges state-backed funds to buy more stocks amid market slump, falling bond yields

China’s financial regulators introduced measures to encourage large state-owned mutual funds and insurers to increase their investment in mainland-listed shares, aiming to stabilize the faltering stock market by directing at least 100 billion yuan from insurers to long-term stock investment. Mutual funds are required to raise their holdings in mainland-listed shares by 10% annually, with a consortium of financial regulators overseeing the plan to boost local shares and establish more attractive long-term investment options, ultimately aiming to reduce negative wealth effects on household consumption and inject capital into undervalued Chinese “value stocks.”

Full Article