SHANGHAI- China's top securities regulator said on Thursday that the country's economy remains healthy despite numerous challenges, urging institutional investors to invest more in equities to help limit short-term market fluctuations while contributing to economic restructuring.

Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), also told a meeting with major banks, insurers and the Social Security Fund that it was important for regulators to adhere to the "no interference" mentality in order to foster stable market expectations.

Yi's remarks come as China stocks slumped on Thursday to a five-week closing low, as COVID-19 outbreaks, the Russia-Ukraine crisis and U.S. monetary tightening eroded investor confidence.

"Currently, the global economic recovery is sputtering, geopolitical tensions deepen, while the domestic economy faces triple challenges from demand contraction, (a) supply shock, and gloomier expectations," Yi told the meeting, according to a CSRC statement.

But the long-term, sound fundamentals of China's economy have not changed, and China's capital markets remain appealing to global investors, he added.

CSRC urged institutions including pension funds, banks and insurers to allocate more of their assets to equities and hone their investment capability.

Also on Thursday, China launched its first private pension scheme, allowing Chinese employees to invest and supplement funds in their pension accounts, as part of efforts to tackle economic challenges linked to an ageing population.

(Reporting by Shanghai Newsroom; Editing by Hugh Lawson)