Beijing, 10 September 2025 – A quiet resurgence in investor confidence is underway in China, as domestic insurers ramp up equity purchases at the strongest pace in years, laying the groundwork for a gradual but sustainable bull market. According to regulatory data, underwriting firms added 640 billion yuan (approximately US$90 billion) in equity holdings during the first half of the year, bringing their total onshore and HK-listed stock exposure to a three-year high of 3.1 trillion yuan.
Industry analysts, including Morgan Stanley, are projecting further upward momentum, with expectations that insurers could pour over 1 trillion yuan into Chinese and Hong Kong equities by year-end.
Previously, Beijing had implemented a series of policy measures to stabilize the stock market—these included directing state insurers to allocate a significant portion of new premiums to equities and nudging mutual funds toward gradually higher shareholdings. Together with swap facilities and long-term performance mandates, these incentives are bolstering investor demand.
Investment banks like Bank of America and Goldman Sachs argue that this orchestrated support is helping reframe Chinese equities from being merely “tradable” to genuinely “investable.” A combination of rising dividends, insurer participation, and renewed corporate trust suggests that China’s market is establishing firmer footing for long-term growth.
