TEHRAN (Iran News) – China will encourage the development of annuities and endowment insurance to diversify people’s investment into the stock market, instead of direct share purchases from savings, the government-backed Securities Times said. “The key consideration is to cultivate a multi-layer stock market,” the newspaper reported, quoting Xiao Yuanqi, spokesman of China Banking and […]
TEHRAN (Iran News) – China will encourage the development of annuities and endowment insurance to diversify people’s investment into the stock market, instead of direct share purchases from savings, the government-backed Securities Times said.
“The key consideration is to cultivate a multi-layer stock market,” the newspaper reported, quoting Xiao Yuanqi, spokesman of China Banking and Insurance Regulatory Commission (CBIRC), Reuters said.
“There’ll be part of savings flows to the institutional investors for sure, then the professional investors can allocate those funds to bonds and equities investment,” Xiao had said in a media briefing.
“We didn’t mean to encourage direct purchase of shares from household savings.”
The media briefing was held days after a statement from the banking and insurance regulator that it would promote the conversion of household savings into long-term funds in the capital markets.
China’s benchmark index rose on Monday as analysts believed the move would bode well for the country’s capital market for the long run.
The regulator would learn from overseas experience and explore the risk disposal framework of problematic institutions, further strengthen the shareholding management of smaller banks to fend off contagious risks, the paper quoted Xiao as saying.
To recapitalize the cash-starved banking sector, Xiao said the regulator would also develop capital tools to replenish banks’ non-tier-one capital ratios.
- source : Iran Daily, Irannews
