Starting this year, 30 per cent of the annual insurance premium earned from new coverage policies will be put into yuan-denominated A shares, said Wu Qing.

State-owned insurers and mutual funds are expected to play a pivotal role in the process, the China Securities Regulatory Commission and the Ministry of Finance said in a press briefing.

China announced plans on Thursday to channel hundreds of billions of yuan of investment from state-owned insurers into shares as part of the government's latest efforts to support a struggling stock market.

HONG KONG: Chinese stocks rose on Thursday, supported by the financial sector after Beijing unveiled plans to encourage insurance companies to purchase shares listed on the mainland.

China on Thursday detailed measures to encourage state-owned funds and insurers to buy more shares, aimed at stabilizing the struggling stock market at a time when U.S. President Donald Trump is preparing to announce tariffs on Chinese imports.

State-owned insurers and mutual funds are expected to play a pivotal role in the process of stabilizing the stock market.

China said on Wednesday it will guide big state insurers and commercial insurance funds to increase investments in the A-share market, in a latest move to boost its lagging stock market.