China Indexes Jumped 1% After Insurance Pilot Investment Plan to Boost Stocks

Li Chen
23 Jan, 2025
Mumbai

Stock market indexes in China and Hong Kong diverged after the financial regulator announced a pilot program to bolster markets. 

The Hang Seng index erased morning gains of as much as 1% to trade lower by 0.4%, and the mainland-focused CSI 300 index jumped 1% following an announcement by the CSRC. 

The China Securities Regulatory Commission announced a pilot program to invest 30% of annual new insurance premiums in China's onshore markets, potentially boosting prices of large-cap companies. 

The pilot program starting this year would see an annual increase of 10% over the next three years, said Wu Qing, chairman of CSRC, at a press conference held in Beijing on Thursday. 

The regulator said about 100 billion yuan, or about $14 billion, will be invested in the first half of this year, including about half of the funds before the start of Lunar New Year on January 29.

 

China Stock Movers 

The Hang Seng index decreased 0.4% to 19,705.52, but the mainland-focused CSI 300 index rose 1% to 3,835.34. 

Ping An increased 1.8% to HK $42.70, China Life advanced 2.2% to HK $14.04, and AliHealth gained 0.7% to HK $3.15. 

Leading tech companies advanced after the regulatory announcement to divert insurance premiums into large-cap stocks over the next three years. 

Tencent Holdings decreased 0.5% to HK $380.40, JD.com fell 0.5% to HK $150.40, and Alibaba Group Holdings rose 0.6% to HK $82.70. 

Tencent and JD.com edged up nearly 1% in the early trading but erased gains near the close of the regular trading hours. 

Fuling Technology soared more than 360% to 24.05 yuan after the disposable tableware company priced its initial public offering and lifted its shares on the Shenzhen Stock Exchange. 

The company sold 147.33 million shares and raised 781 million, or $108.7 million, after pricing its shares at 5.30 yuan.