Two of China’s biggest insurers, New China Life Insurance (NCI) and China Life Insurance, are collaborating to launch a $7 billion private fund to invest in listed stocks.
The two state-backed insurers will contribute $3.5 billion each towards the fund provisionally titled Honghu Private Securities Investment Fund.
The insurers also plan to set up a new company to manage it.
According to a statement from NCI, the fund is designed to increase investment in long-duration assets in line with the company’s investment strategy, optimising the asset-liability matching of insurance funds and improving the efficiency of fund utilisation.
The fund launch also comes after China’s regulators called on large, long-term funds to play a bigger role in supporting the mainland’s stock market which has slumped in recent months.
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