China Raises Insurance Limit on Equity Ownership

China thinking about pumping the A-share market again? Need some place for renminbi to go with the rising exchange rate making foreign assets attractively priced again... iFeng: 超重磅！刚刚，国常会发话，万亿险资入市要加速？

According to news from China Government Network on December 9, Premier Li Keqiang of the State Council hosted an executive meeting of the State Council on the same day to deploy measures to promote the expansion and quality of life insurance to meet the diverse needs of the people; the Regulations on the Supervision and Administration of the Use of Medical Security Funds (Draft) )" and "Regulations on Pollution Discharge Permit Management (Draft)".

These contents are related to A shares. The meeting pointed out that the long-term investment capacity of insurance funds should be improved, prevent the speculative use of insurance funds, strengthen asset and liability management, and strengthen risk prevention and control.

Set up a differentiated supervision ratio for insurance funds investment equity assets, up to 45% of the company's total assets, encourage insurance funds to participate in major projects such as infrastructure and new urbanization, and better play the role of supporting the real economy.

iFeng: 人民币汇率升破6.50关口！狂涨7000点，换10万美元省7万元

Li Liuyang, chief foreign exchange analyst of China Merchants Bank's Financial Market Department, believes that from a technical point of view, 6.50 is the next support. In the short term, the rapid appreciation of the renminbi has basically come to an end, and the probability of a correction or horizontal consolidation after that is not low.

What is the impact on A shares?

Generally speaking, the rise in the RMB exchange rate is good for the A-share market, but as of the close on the 9th, the Shanghai Index fell 1.12% to 3371.96 points, the Shenzhen Component Index fell 1.84%, the ChiNext Index fell 1.76%, and the total turnover of the two markets was 791.5 billion yuan. The net purchase was 3.89 billion yuan.

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