China will use CNY300 billion in special bonds to help recapitalize five state-owned insurers, marking the first time the financing tool has been deployed for the insurance sector. The insurers and three banks plan to raise up to a combined CNY360 billion through capital injections from the Ministry of Finance and other shareholders. The five insurers will receive CNY70 billion from the ministry, including CNY35 billion for China Life Insurance (Group) Co and CNY7 billion for China Taiping Insurance Group, while PICC Group plans to raise up to CNY15 billion through a private A-share placement to the ministry. Analysts said the capital should ease solvency pressures, particularly core solvency ratios affected by lower government bond yields, and remove constraints on long-term equity investment. Insurance stocks fell as some investors focused on dilution and questioned whether the measures would translate into broader economic stimulus.