Today, A-shares suddenly surged with heavy trading volume, but insiders had already sensed the wind—insurance funds have been given the green light!

The regulators quietly tweaked two technical parameters: For CSI 300 and CSI Dividend Low Volatility 100 constituent stocks held for more than 3 years, the risk factor was cut from 0.3 to 0.27; for STAR Market ordinary stocks held for more than 2 years, the risk factor was reduced from 0.4 to 0.36. What does this mean?

Simply put: insurance companies buying these high-quality stocks no longer need to set aside as much "risk reserve capital."

For example, previously, buying 1 million yuan worth of blue chips in the CSI 300 (like bank stocks) required an extra 300,000 yuan in reserve funds at a 0.3 risk factor; now, only 270,000 yuan is needed, and the extra 30,000 yuan can be invested elsewhere. The effect is even greater for STAR Market stocks—1 million yuan investment used to require 400,000 yuan in reserves, now only 360,000 yuan is needed, directly freeing up 40,000 yuan in available capital.

The core takeaway: As risk reserve requirements are loosened, insurance institutions have more money to pour into the stock market—this is a visible and tangible injection of new ammunition for A-shares!

So how much real money could be unleashed? Let’s crunch the numbers: By the end of Q3 2025, the total equity and fund investments of life and property insurers amounted to 5.59 trillion yuan. Excluding the fund portion, pure stock investments totaled 3.62 trillion yuan. Under the old rule of a 0.3 risk factor, 1.08 trillion yuan had to be reserved; under the new policy, only 0.98 trillion yuan is needed—this single change frees up 100 billion yuan in investable funds, all of which can enter the market directly!

The most crucial transmission effect comes next. Now that insurance funds have been loosened, will social security, pensions, and bank wealth management products follow with similar moves? Once this chain is opened, the potential for further incremental inflows grows exponentially.

Why release this big move right now? Just look at the recent trading volume in the main board—the market desperately needs fresh capital to stabilize, and insurance funds have always been the "ballast stone" of A-shares. This targeted RRR cut is a strong boost for the market, and that’s the core secret behind today’s surge in both volume and price!