China is guiding local mutual funds and insurers to boost their stock purchases in the government’s latest initiative to shore up its ailing equity market as it confronts the threat of higher tariffs.

China announced plans on Thursday to channel hundreds of billions of yuan of investment from state-owned insurers into shares as part of the government's latest efforts to support a struggling stock market.

World shares showed mixed results as China introduced measures to boost its stock markets. European indices saw slight gains, while Asian markets had varied performances. U.S. futures dipped slightly.

China rolled out a basket of measures to stabilize its stock markets, including plans to boost the amount pension can invest in the nation’s listed companies, as it combats uncertainty in a second Donald Trump presidency.

State-owned insurers and mutual funds are expected to play a pivotal role in the process, the China Securities Regulatory Commission and the Ministry of Finance said in a press briefing.

China on Thursday detailed measures to encourage state-owned funds and insurers to buy more shares, aimed at stabilizing the struggling stock market at a time when U.S. President Donald Trump is preparing to announce tariffs on Chinese imports.

Starting this year, 30 per cent of the annual insurance premium from new policies will be put into yuan-denominated A shares, regulator Wu Qing said.

Investments from the National Social Security Fund, mutual funds and other sources will be increased to boost the stock market, regulators say.

Equities rally as authorities set explicit investment targets for mutual funds and state-owned insurance companies