Business · Markets · 6 hrs ago
China urges insurers not to sell as stock market slumps
China is bringing back measures to support its stock market after a sharp fall.
In October, Chinese shares had their worst monthly decline in more than a decade, and the CSI 300 index fell into bear-market territory from its late-June peak.
Some investors say state-owned insurers helped drive the latest drop by buying technology shares near their highs, then cutting their holdings sharply.
Insurers had been increasing their stock investments as China’s policymakers urged them to provide more long-term funding to the market.
Authorities have now urged major insurers not to sell shares and to disclose their holdings, while the central bank is providing low-cost funding for company share buybacks and institutional investors.
The measures aim to contain the slump, but the available information does not say how the market or insurers will respond.
Chinese regulators have informally urged major insurers not to sell shares as the stock market slumps.
The guidance also asks insurers to disclose their shareholdings and align investment decisions with broader economic goals.
China’s stock market recorded its worst monthly decline in more than a decade in October.
Shiva Capital Group founder Hong Liang accused insurers of sharply reducing holdings after buying technology stocks near their July peak.
State-owned insurers have increased their stock holdings in recent years, partly in response to policymakers’ calls for more long-term capital.
- Who
- Chinese regulators and major insurance companies. Shiva Capital Group founder Hong Liang has accused insurers of contributing to the decline.
- What
- Regulators have informally urged insurers not to sell shares and to disclose their holdings.
- When
- The guidance was issued in the days before the article was published on November 9, 2026.
- Where
- China.
- Why
- To help stop losses and contain the stock market slump.
This story does not have two clearly opposing sides.
State-owned insurers steadily increased their stock holdings.
Insurers were accused by Hong Liang of buying technology stocks near their peak.
Hong Liang said insurers sharply reduced their holdings.
China’s stock market recorded its worst monthly decline in more than a decade.
Authorities informally urged major insurers to disclose holdings and refrain from selling.
- Market decline
- Worst monthly fall in more than a decade, in October
- CSI 300
- Entered bear-market territory from its late-June peak
- Star 50
- Fell by as much as 48%
- China Life Insurance
- Equity share of portfolio reached 19.2% at the end of June, up from 16.9% in 2025
- Instructions to insurers
- Disclose shareholdings and refrain from selling
What people are saying
really puzzling