In a significant move to bolster the capital market and drive high-quality economic development, China's State Council Information Office (SCIO) held a press conference on Thursday announcing new initiatives to encourage the flow of medium- and long-term funds into the market.
Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), outlined comprehensive plans to expand corporate pension coverage across the country. Employers meeting specific criteria are encouraged to allow individuals greater autonomy in making investment choices within corporate pension schemes. This step aims to diversify investment strategies and support fund managers in adopting differentiated approaches.
\"We are committed to enhancing the management of public funds,\" Wu emphasized, setting an ambitious target of at least a 10 percent annual increase in the market value of A-shares held by public funds over the next three years. This initiative is expected to inject vitality into the stock market and provide stable returns for investors.
The CSRC also announced accelerated efforts to implement a second batch of long-term stock investment pilots for insurance funds, with a planned scale of no less than 100 billion yuan (approximately $13.7 billion). Building on existing initiatives, the commission aims to guide large state-owned insurance companies to significantly increase both the scale and proportion of their investments in A-shares.
Starting in 2025, a notable policy change will see 30 percent of newly collected insurance premiums allocated for investment in A-shares. This strategic move is anticipated to channel substantial funds into the stock market, fostering sustained growth and stability.
These reforms reflect the Chinese mainland's commitment to deepening financial market reforms and opening up its economy. By encouraging long-term investment and expanding pension coverage, the government seeks to strengthen the capital markets and provide robust support for economic development.
Reference(s):
cgtn.com
