Chinese stocks extend rise as state-backed insurers tout long-term investments

In the latest sign of government support, five state-backed insurers say they will continue to boost their equity holdings

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Data on the Shanghai Composite Index is displayed on an electronic screen on a pedestrian overpass in Shanghai. Photo: CFOTO/Future Publishing via Getty Images

Zhang Shidongin ShanghaiandDaisy Wuin Hong Kong

Published: 9:49am, 21 Jul 2026Updated: 4:19pm, 21 Jul 2026

Chinese stocks extended their gains to close higher on Tuesday, capping a session driven by official market-stabilisation measures and strong institutional backing following recent global market turbulence.

On the mainland, the Shanghai Stock Exchange’s Star 50 Index led the market higher, ending the day up 11 per cent. The ChiNext 50 gauge of Shenzhen-listed start-ups finished more than 7 per cent higher, while the broader CSI 300 Index closed up 3 per cent.

In Hong Kong, the benchmark Hang Seng Index fell 0.04 per cent, while the Hang Seng Tech Index edged up roughly 1.3 per cent.

Policy signals from top officials provided sustained momentum throughout the trading day. On Monday, Premier Li Qiang chaired a State Council executive meeting, urging stronger policy support for the service sector, infrastructure networks, and intellectual property protections to foster innovation.

In a separate move, the National Development and Reform Commission’s chairman, Zheng Shanjie, met with private enterprise leaders, pledging integrated policy support to cultivate “new quality productive forces” and boost economic confidence.

Adding direct support to the equity market, five major state-backed insurers - including Ping An Insurance Group and the People’s Insurance Group of China - have publicly touted the long-term investment values of Chinese stocks, committing to continuously expand their equity holdings. The five institutions managed more than 20 trillion yuan (US$2.96 trillion) in total assets at the end of 2025.

Chinese stocks extend rise as state-backed insurers tout long-term investments

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}In the latest sign of government support, five state-backed insurers say they will continue to boost their equity holdings

In the latest sign of government support, five state-backed insurers say they will continue to boost their equity holdings