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Beijing tells insurers to buy more Chinese stocks

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Beijing tells insurers to buy more Chinese stocks

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Chinese authorities have sought to boost the stock market and restore confidence in the world’s second-largest economy by telling local insurance companies and mutual funds to invest more in domestic stocks.

Regulators have told state insurers to invest a minimum of 30 per cent of their new policy premiums in local shares, while mutual funds have been told to increase these shareholdings by 10 per cent annually for the next three years. This is the first time regulators have set an explicit target for investments.

The policy shift could mean that up to Rmb500bn ($68bn) could flow into the market from China’s three biggest state-owned insurers alone, according to a Financial Times analysis of last year’s policy premiums. Insurers already hold shares worth Rmb4.4tn, said regulators.

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The mainland’s CSI 300 index rose as much as 1.8 per cent on Thursday, almost erasing losses incurred on Wednesday after the new US administration threatened tariffs on Chinese exports.

Geopolitical tensions, a cooling economy and a property market crisis have in recent years hit demand for Chinese equities.

The latest move, first announced on Wednesday evening by regulators including the China Securities Regulatory Commission and the People’s Bank of China, aims to “stabilise the stock market and clear the bottlenecks for the entry of medium- and long-term funds into the market”.

The announcement comes days ahead of China’s Lunar New Year holiday, a closely-watched period for retail spending and consumer sentiment.

Analysts at Bank of America estimate that the additional inflows into the equity market could be Rmb470-530bn in 2025.

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“Clearly regulators do care about the stock market. They want to adopt a supportive stance and keep injecting confidence into the market right before the Lunar New Year,” said Winnie Wu, chief China equity strategist at Bank of America.

“Judging from today’s share price reaction, it appears that the incremental impact of pure financial and stock market related stimulus [is] no longer as powerful as it was during the last move in September 2024”, she added.

Chi Lo, senior Asia-Pacific market strategist at BNP Paribas, said the announcement was a “stabilising” move because of a “lack of confidence in the private sector” and “weak demand for stocks”.

The CSI 300 index soared in late September after the government announced support measures, including funding for stock buybacks and mortgage cuts. But it has since fallen 15 per cent from a peak in early October.

In September, authorities also announced a pool of $100bn to lend to companies to enact share buybacks and to lend to asset managers, insurers and brokers to buy local equities.

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The index closed up 1 per cent on Thursday while Hong Kong’s Hang Seng benchmark was down 0.4 per cent.

Chinese insurance companies listed in Hong Kong, such as China Life Insurance and Ping An Insurance, rose 2.3 per cent and 1.9 per cent, respectively.

The latest announcement included further fee cuts to some mutual fund products and a crackdown on speculative trading of Chinese shares.

It also included measures to give state-owned insurance companies incentives to focus more on long-term returns, the latest attempt from Beijing to improve the efficiency of state-run enterprises, amid concerns over capital allocation.

Investors are watching for more signs of stimulus from Beijing this year after the September package, especially measures to support domestic consumption.

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Authorities this month expanded a scheme to trade in old consumer goods, such as household appliances, for new ones.

“The government has to do something to turn around confidence, and nobody knows exactly what this something is,” said Lo. “Beijing is doing different things, asking state-owned companies to buy the stock market, buy up property, and hopefully some of these things will help to turn around confidence.”

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Trump claims US stockpiles mean wars can be fought ‘forever’; Kristi Noem testifies before Congress – US politics live

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Trump claims US stockpiles mean wars can be fought ‘forever’; Kristi Noem testifies before Congress – US politics live

Trump says US stockpiles mean “wars can be fought ‘forever’”

In a late night post on Truth Social, Donald Trump said that the US munitions stockpiles “at the medium and upper medium grade, never been higher or better”.

He added that the US has a “virtually unlimited supply of these weapons”, meaning that “wars can be fought ‘forever’”.

This comes after Trump said that the US-Israel war on Iran could go beyond the four-five weeks that the administration initially predicted. The president also did not rule out the possibility of US boots on the ground in Iran during an interview with the New York Post on Monday.

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“I rebuilt the military in my first term, and continue to do so. The United States is stocked, and ready to WIN, BIG!!!,” he wrote.

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Key events

During his opening remarks, Senate judicicary committee chairman, Chuck Grassley, blamed Democrats for the ongoing shutdown Department of Homeland Security (DHS) but highlighted four agencies: the Secret Service, Federal Emergency Management Agency (FEMA), the Transportation Security Administration (TSA), and the Coast Guard.

Democrats are demanding tighter guardrails for federal immigration enforcement, but a sweeping tax bill signed into law last year conferred $75bn for Immigration and Customs Enforcement (ICE), which means the agency is still functional amid the wider department shuttering.

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Win McNamee/Getty Images

The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

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Map: Earthquake Shakes Central California

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Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

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