Policy may spur State insurers' equity play

Stress on long-term focus set to boost market confidence, certain industries

China has revised its method of assessing the performance of State-owned commercial insurance companies, stressing more on long-term focus, according to a circular of the Ministry of Finance unveiled on Monday.

Experts said the move will encourage insurers to invest more on long-term equities, including stocks, which will eventually help boost the capital market and benefit industries with promising prospects.

The new assessment policy, which took effect on Wednesday, takes into consideration a State-owned commercial insurer's return on assets or ROA in both the past three years and the current year, to assess its ROA performance.