Officials say the domestic financial industry has experienced fast growth in past few years, however is in “low quality” and problematic.

Zhou Liang, deputy chair of the China Banking and Insurance Regulatory Commission, said regulators generally encourage insurance companies to make long-term investments in stock markets.

During an interview with the Securities Times, Zhou said regulators have been studying to launch more detailed regulation rules for insurance funds’ investment in stock market since the end of last year, aiming to support the overall financial market development in China.

Zhou said the domestic financial industry has experienced fast growth over the past few years, however it is “low quality” and problematic.

To realize “high quality development,” the industry should first make more efforts to serve the real economy and deepen supply-side reform in the sector.

The financial industry should also enhance its financing support for small and micro enterprises. Although lending for small and micro enterprises increased by 21% year on year in volume in 2018, and a larger number of small businesses benefited, their funding demands are still underserved.

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