China Encourages Insurers to Invest More in Stocks by Lowering Risk Weights

China's regulator lowered risk weights for insurers investing in blue-chip and tech stocks, encouraging more investment in lagging market
Risk weight for CSI300 stocks cut to 0.3 from 0.35, STAR Market stocks to 0.4 from 0.45
Lower risk weights free up more capital for insurers to invest
Regulator also cut risk weights for REITs and some private equity
China has unveiled measures to boost investor confidence and revive stock market, including cutting stamp duty and slowing IPOs

reuters.com

Relevant topic timeline:

8/18/2023

Chinese authorities attempt to revive flagging economy amid contagion fears

Chinese authorities have introduced new measures to boost investor confidence in the stock market by reducing trading costs, relaxing rules on share buybacks, and considering extended trading hours and a cut in stamp duty, following recent declines in both the stock and bond markets. These declines have been influenced by China's deteriorating economic outlook, including deflation, weak consumer spending on manufactured goods, rising youth unemployment, and concerns over the property market.

8/18/2023

China unveils measures to revive stock market

China's securities regulator has announced a series of measures to revive the country's sinking stock market, including cutting trading costs and supporting share buybacks, despite concerns that these actions will not boost investor confidence unless the economy improves.

8/23/2023

Exclusive: German guarantees for China investments plummet -document

The volume of investment guarantees provided by the German government to companies investing in China has significantly decreased this year, reflecting Germany's efforts to reduce reliance on the country and address security concerns related to advanced Chinese manufacturing.

8/24/2023

China’s Market Reforms Aim to Lure Investors to Stocks and Bonds. They May Not Be Enough.

China's regulators are implementing new measures to attract investors to the country's securities markets, but it remains uncertain if these reforms will be sufficient.

9/7/2023

Kelly Evans: Why China is turning into a liability for American companies

China's economic challenges and failed rebound post-Covid are causing U.S. investors and businesses to view Chinese exposure as a liability, leading to underperformance in companies with high China exposure and potential bans on foreign devices, signaling a potential decline in China's economic growth.

9/19/2023

China's Central Bank Reassures Foreign Firms Amid Market Turmoil and Falling Investment

China's central bank has reassured multinational companies such as Tesla and HSBC that it will optimize its policy support after a sell-off in the stock market and concerns over foreign investment, as firms continue to divert investment away from China due to national security regulation and decoupling risks with the US.

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Posted 9/10/2023, 2:27:00 PM

China Encourages Insurers to Invest More in Stocks by Lowering Risk Weights

China's regulator lowered risk weights for insurers investing in blue-chip and tech stocks, encouraging more investment in lagging market
Risk weight for CSI300 stocks cut to 0.3 from 0.35, STAR Market stocks to 0.4 from 0.45
Lower risk weights free up more capital for insurers to invest
Regulator also cut risk weights for REITs and some private equity
China has unveiled measures to boost investor confidence and revive stock market, including cutting stamp duty and slowing IPOs

reuters.com

Relevant topic timeline:

8/18/2023

Chinese authorities attempt to revive flagging economy amid contagion fears

8/18/2023

China unveils measures to revive stock market

8/23/2023

Exclusive: German guarantees for China investments plummet -document

8/24/2023

China’s Market Reforms Aim to Lure Investors to Stocks and Bonds. They May Not Be Enough.

China's regulators are implementing new measures to attract investors to the country's securities markets, but it remains uncertain if these reforms will be sufficient.

9/7/2023

Kelly Evans: Why China is turning into a liability for American companies

9/19/2023

China's Central Bank Reassures Foreign Firms Amid Market Turmoil and Falling Investment