China will expand a pilot programme allowing financial asset investment companies to invest in equities, the National Financial Regulatory Administration (NFRA) said. The initiative aims to support technological innovation and private enterprises by widening investment scope. NFRA will also allow qualified commercial banks to establish financial asset investment firms and encourage insurance capital participation. The move is expected to boost credit supply and lower financing costs for private firms. Additionally, China has approved CNY60bn (USD8.28bn) for insurance funds to make long-term capital market investments. The expansion aligns with Beijing’s broader efforts to strengthen private sector funding and enhance financial stability amid economic uncertainties.