A capital injection worth 70 billion yuan should anchor the ability of five Chinese state-owned insurers' capacity to anchor the economy and address current and potential bottlenecks, S&P Global Ratings said in a Tuesday release.

The injection will boost the sector's financial resilience as it faces heightened geopolitical and market volatility, S&P credit analyst WenWen Chen said.

The support, which is a rare move from the Ministry of Finance, points to the state's assurance in aiding the financial system, S&P said.

The injection provides a modest boost to insurers' sufficient solvency levels while giving them more leeway to weather a changing macro and regulatory environment, according to the rating agency.