BEIJING (Reuters) – China’s monetary regulator on Sunday lowered the danger weight it attaches to insurers’ holdings of blue-chip and know-how shares, encouraging them to speculate extra within the nation’s lagging inventory market.
The Nationwide Administration for Monetary Regulation (NAFR) stated on its web site that the danger weight of CSI300 index elements will fall to 0.3 from 0.35, whereas the danger weight of shares listed on Shanghai’s technology-focused STAR market can be diminished to 0.4 from 0.45.
A decrease threat weighting frees up extra capital for insurance coverage firms to speculate.
As well as, the watchdog lowered the danger weights it assigns to investments in actual property funding funds, which direct cash in China primarily into infrastructure tasks.
It additionally assigned a comparatively low threat weight for personal fairness investments in strategic and rising sectors in China.
China has unveiled a collection of measures to spice up investor confidence and revive the inventory market. They embrace halving stamp obligation on share buying and selling and slowing the tempo of preliminary public choices (IPOs).
(Further reporting by Samuel Shen in Shanghai and Yu Lun Tian in Beijing; Enhancing by Christina Fincher)
