China plans to use CNY 300 billion in special treasury bonds to help fund a CNY 360 billion ($53.6 billion) recapitalization of three state lenders and five state-owned insurers. The program marks the first use of the special-bond tool for insurers, which face solvency pressure from lower government-bond yields and have been directed to increase long-term stock-market investment. Five insurers and three banks said they would raise capital from the Ministry of Finance and other shareholders. The ministry will provide CNY 70 billion to five insurers, including CNY 35 billion for China Life Insurance (Group) Co and CNY 7 billion for China Taiping Insurance Group, while PICC Group plans a private A-share placement of up to CNY 15 billion to the ministry. Analysts said the funding should improve insurers' core solvency positions and remove a constraint on equity purchases. Beijing has required insurers to invest 30% of new premiums in stocks since the beginning of last year, but equities represented 21% of assets at five major listed mainland insurers at the end of 2025. Cheng Tan of GMF Research estimated that CNY 60 billion for four commercial insurers could support about CNY 100 billion in additional equity exposure. The insurer package arrived earlier than market expectations for support in 2027, though Citi said its CNY 70 billion size was below a previously anticipated CNY 200 billion. The CSI300 rose 0.6% on Monday, while insurance and banking shares fell on concerns that the capital raisings would dilute existing shareholders.