Chinese insurers boost equity holdings to record levels, set to drive bull market

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Chinese insurers have lifted their equity holdings to the highest level in more than three years, responding to Beijing’s push to support a steady bull market. Report comes via Bloomberg. Regulatory data show holdings rose by 640 billion yuan ($90 billion) in the first half of 2025 to 3.1 trillion yuan, or 8.5% of total assets. Brokerages expect inflows to continue, with Morgan Stanley projecting over 1 trillion yuan of purchases into Chinese and Hong Kong equities this year alone.Analysts say long-term insurance flows are deepening liquidity, favouring dividend payers and sector leaders, while helping stabilize valuations. Authorities have supported the trend by easing equity investment caps, raising allocation requirements, and reducing capital charges.Strategists see flows continuing through 2026, though greater exposure could amplify volatility in downturns. Still, with low bond yields and regulatory backing, insurers are expected to remain a key anchor for Chinese equities. This article was written by Eamonn Sheridan at investinglive.com.