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[QUOTE="Nehanda, post: 23665, member: 2262"]
China wants more people to buy stocks. It hopes this will help the market do better.

China's government talked to big insurance companies yesterday. It said they should use more of their money to purchase shares. The firms should put 30% of new funds into stocks.

China also has a new plan. It will start in the first half of this year. The goal is to get insurers to invest at least $13.75 billion in stocks for the long haul. Officials think this amount will keep rising. It could bring hundreds of billions to the market each year.

Investment funds have a new rule, too. Over the next three years, they must increase their stock holdings by 10% every year.

On Wednesday, a group of financial officials shared these ideas. They want big funds, like those for retirement, to buy more Chinese shares. They believe it will calm the stock market.

Experts agree with the strategy. They say large investors can make trading less wild. When these groups buy stocks, it can lead to more stable prices. The market may focus more on the real value of companies.
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