guidance on promoting the entry of medium- and long-term funds into the market will be issued soon
2024-09-25
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at the press conference held by the state council information office on september 24, wu qing, chairman of the china securities regulatory commission, answered questions from a reporter from china securities journal on "how to better promote the entry of medium- and long-term funds into the market and promote the balance of investment and financing in the next step". he said that in order to further clear the pain points and bottlenecks of the entry of medium- and long-term funds into the market, with the strong support of relevant ministries and commissions, the china securities regulatory commission and other relevant departments have recently formulated the "guiding opinions on promoting the entry of medium- and long-term funds into the market", which will be issued in the near future. overall, it focuses on the goal of "more long money, longer long money, and better returns", and further promotes the entry of medium- and long-term funds into the market.
"long-term money is indeed very important." wu qing said that the investment operation of medium- and long-term funds is highly professional and stable, which is of great significance for overcoming short-term market fluctuations and playing the role of "stabilizer" and "ballast stone" of the capital market.
he introduced that in recent years, the csrc has vigorously promoted the development of equity public funds, and has continued to promote the entry of medium- and long-term funds into the market together with relevant parties, and has achieved some phased results. by the end of august this year, professional institutional investors such as equity public funds, insurance funds, and various pension funds held a total of nearly 15 trillion yuan in a-share market value, more than doubled from the beginning of 2019, and the proportion of a-share market value increased from 17% to 22.2%. "among them, the national social security fund is very prominent. since its establishment, the national social security fund has achieved an average annualized return of more than 10% in its domestic stock market investments, becoming a model of long-term investment and value investment in the a-share market." wu qing said.
"at the same time, we also see that the current capital market still has prominent problems such as insufficient total amount of long-term funds, poor structure, and insufficient leading role, and the institutional environment for 'long-term money and long-term investment' has not yet been fully formed."
wu qing said that in order to implement the spirit of the third plenary session of the 20th cpc central committee and further clear the pain points and bottlenecks for medium- and long-term funds to enter the market, the china securities regulatory commission and other relevant departments have recently formulated the "guiding opinions on promoting the entry of medium- and long-term funds into the market" with the strong support of relevant ministries and commissions. it will be issued soon, which includes a series of arrangements to support the entry of medium- and long-term funds into the market.
wu qing introduced that the "guiding opinions" to be released soon will focus on three measures.
first, vigorously develop equity public funds. the focus is to urge fund companies to further correct their business philosophy, adhere to the investor return orientation, focus on improving investment research and service capabilities, create more products that meet the needs of ordinary people, and strive to create long-term returns for investors. in the next step, the csrc will further optimize the registration of equity fund products, vigorously promote the innovation of index products such as broad-based etfs, and launch more small and medium-sized etf fund products including gem and sci-tech innovation board in a timely manner to better serve investors and better serve national strategies and the development of new quality productivity. in addition, it will continue to promote the public fund industry to steadily reduce the comprehensive fee rate, better benefit investors and return investors.
second, improve the institutional environment for "long-term investment". the focus is to improve the regulatory inclusiveness of medium- and long-term equity investment, and fully implement long-term assessments of more than three years. remove the institutional barriers that affect long-term investment of insurance funds, promote insurance institutions to be firm value investors, and provide stable long-term investment for the capital market. at the same time, guide the multi-level and multi-pillar pension security system to interact with the capital market in a benign manner, improve the national social security fund and basic pension insurance fund investment policy system, and encourage enterprise annuity funds to explore different types of differentiated investments based on the different ages and risk preferences of holders.
third, we will continue to improve the ecology of the capital market. the focus is on taking multiple measures to improve the quality and investment value of listed companies, improving supporting institutional investors' participation in the governance of listed companies, and cracking down on all kinds of illegal and irregular behaviors, so as to create a good market ecology where medium- and long-term funds are "willing to come, stay, and develop well".
"in the next step, we will work together with relevant ministries and units to intensify our efforts to ensure that all measures can be implemented," said wu qing.
source: china securities journal
