Chinese Government Officials Described Four Levels of Measures to Implement Medium- and Long-Term Funds into the Market
Go Wire
January 23, 2025
GoGPT Summarizes Articles
With the China Securities Regulatory Commission (CSRC) announcing on Wednesday the central government's measures to stabilize the mainland’s market by boosting medium- and long-term capital inflow, Wu Qing, chairman of the CSRC, Liao Min, vice minister of finance, and Zou Lan, an official of China's central bank, held a press conference at 9 am SGT, on Thursday (Jan. 23) on how to implement them.
At the conference, Wu said that measures would improve supervision and the environment to ensure the inflow of various medium- and long-term funds into the mainland’s market.
Specific arrangements include steadily increasing the proportion and stability of medium- and long-term funds invested in the mainland stock market, using a long-term assessment of these funds to mitigate the impact of short-term market fluctuations on performances, and strengthening the policy cooperation among central government departments. These programs strive to increase the market value of the mainland’s shares held by public funds by at least 10% annually over the next three years and ask large state-owned insurance companies to invest 30% of their annual new premiums in the mainland’s shares from 2025.
Separately, the measures at the asset level will promote the quality and investment value of listed companies through policies that encourage dividends and share buybacks. At the trading level, the initiatives will allow institutional investors such as public funds, commercial insurance funds, basic pension funds, annuity funds, and bank wealth management to invest more actively and incrementally in listed companies. At the institutional level, the programs will support securities fund operators to carry out mergers and acquisitions following market-oriented principles and to build first-class investment institutions. At the enforcement level, the measures will improve the system of special representative actions and party undertakings and the investor protection system in the process of delisting enterprises.
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