China Life Insurance Co. has been snapping up ``large quantities'' of open-end stock funds, a move that signals the end of China's equity market slump, the China Securities Journal reported, citing unidentified people.
Chinese insurers have been following China Life's lead in buying index-linked funds, boosting optimism that Shanghai's key Composite Index may rebound at about 2,800 points, the state-owned newspaper said, citing analysts without naming them. The move by China Life, the country's largest insurer, is significant because of its bellwether size and its influence in the industry, especially its tendency to ndertake large-scale purchases, the newspaper said.
Sales of China's stock funds may be bolstered, reversing an equity market slump that had limited the new funds this year to 1 billion yuan ($145.6 million) each, the newspaper said.
Just support from the government to pop up the stock market?
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