Chinese insurers raise stock holdings

BEIJING - China's insurance companies purchased shares and stock funds in a show of confidence, the insurance regulator said.

On Thursday, six monitored insurance companies saw a net purchase of 15.1 billion yuan ($2.47 billion) in stocks and stock funds, the China Insurance Regulatory Commission (CIRC) said in a statement.

China's stock market has been shaken by drastic fluctuations, so to restore calm to the market insurers have lived up their social responsibility and bought more shares and funds, the commission said.

The benchmark Shanghai Composite Index plunged more than 32 percent between June 15 and Wednesday due to restrictions on margin trading, concerns about over-valuation, and panic selling.

Following a raft of supportive measures, the CIRC on Wednesday announced that qualified insurance companies would be allowed to invest up to 10 percent of their assets in a single blue chip, up from the previous 5 percent.

"As market risks get released in the near future, the insurance sector will continue to make use of their long-term capital and increase investment to promote the capital market's steady and healthy development," the CIRC said.