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TheMKS sports National Financial Regulatory Administration (NFRA), and the People's Bank of China (PBC), the central bank, and a major Chinese state-owned investment company on Tuesday morning vowed to firmly support the capital market.The NFRA said on Tuesday that it has issued a notice on adjusting the regulatory ratio of insurance funds' equity assets, in order to optimize the insurance asset allocation structure, give full play to the value investment and long-term investment advantages of insurance funds, and improve the quality and efficiency of insurance funds in serving the real economy.
The notice included measures such as raising the equity investment ratio by 5 percent for certain solvency ratio tiers, expanding the room for equity investment and providing more equity capital to the real economy. The cap on investments in venture capital funds will also be raised to guide more insurance funds into strategic emerging industries. The move aims to increase support for the capital market and the real economy, according to China Media Group (CMG).
Some major insurance companies have also pledged to act as truly patient investors, ramping up investments in strategic emerging industries.
Xinhua Insurance said that it aims to play a key role in supporting the steady development of the capital market and the real economy, and to serve the growth of new quality productive forces with high efficiency. China Pacific Insurance also said that it firmly believes the long-term fundamentals of the Chinese economy remain unchanged and remains confident in the growth prospects of China's capital market, according to media reports.
Also on Tuesday morning, the PBC said that it firmly supports Central Huijin Investment in increasing its holdings of stock market index funds, and will provide Central Huijin with sufficient re-lending support when necessary, resolutely maintaining the smooth operation of the capital market.
Central Huijin, a state-owned investment company, said on Tuesday that it will continue to play its role as a "stabilizer" in the capital market, effectively curbing abnormal fluctuations and taking decisive action when necessary. "Central Huijin has sufficient confidence and ability to resolutely maintain the stable operation of the capital market," the company said.
Meanwhile, some Chinese listed companies have rolled out share buyback and stake increase plans.
Contemporary Amperex Technology Co, the battery maker, said on Tuesday that it plans to repurchase shares worth between 4 billion yuan and 8 billion yuan using its own or raised funds, with the buybacks to be conducted via centralized bidding.
Seven listed companies under China Merchants Group, including China Merchants Shekou, China Merchants Port, and China Merchants Energy Shipping, issued statements before market opening on Tuesday, announcing plans to accelerate their share repurchase programs. The move reflects strong confidence in their future prospects and recognition of their intrinsic value, and aims to safeguard the interests of all shareholders, reinforce market confidence, and enhance the investment value of the listed companies, CMG reported.
The moves came as global stock markets continued to post losses. Investors are worried that steep trade barriers around the world's largest consumer market could lead to a recession, following the US' tariffs, Reuters reported.
Global Times