China to expand equity investment pilot program, says regulator

China will expand a pilot program for financial asset investment companies to invest in equities, the country's financial regulator announced on Wednesday.

The National Financial Regulatory Administration (NFRA) will expand the geographical scope for investment, according to the regulator's statement, which noted that such investments can boost support for technological innovation and private enterprises.

The NFRA will also support qualified commercial banks to set up financial asset investment companies and support insurance capital to participate in the programme, the statement showed.

It will increase supply of credit to more private enterprises and reduce financing costs for the firms, Li Yunze, head of NFRA, said on Wednesday.

China has approved an additional 60 billion yuan (HK$64.25 billion) under a pilot program for insurance funds to make long-term investments in capital markets, said Li.

REUTERS