The Chinese stock market welcomes favorable policies again

On January 22, it was announced that, after review and approval by the Central Financial Committee, the Central Financial Office, the China Securities Regulatory Commission, the Ministry of Finance, the Ministry of Human Resources and Social Security, the People's Bank of China, and the Financial Regulatory Administration jointly issued the "Implementation Plan for Promoting Long-term Funds to Enter the Market."

Main measures include:

First, enhance the investment proportion and stability of commercial insurance funds in A-shares. Based on the existing foundation, guide large state-owned insurance companies to increase the scale and actual proportion of A-share (including equity funds) investments. Implement a long-term performance assessment for state-owned insurance companies with a cycle of three years or more, where the net asset return rate's weight in the current year's assessment does not exceed 30%, and the weight of indicators for the three to five-year cycle is not less than 60%. Accelerate the promotion of the second batch of pilot projects for long-term stock investments by insurance funds, gradually expanding the scope of participating institutions and the scale of funds.

Second, optimize the investment management mechanism for the National Social Security Fund and the Basic Pension Insurance Fund. Gradually increase the proportion of stock assets in the National Social Security Fund, and promote the expansion of the entrusted investment scale of the Basic Pension Insurance Fund in qualified regions. Clarify the long-term performance assessment mechanism for the National Social Security Fund over five years and the Basic Pension Insurance Fund's investment operations over three years, supporting the National Social Security Fund Council to fully leverage its professional investment advantages.

Third, improve the market-oriented investment operation level of enterprise (occupational) annuity funds. Accelerate the introduction of guidance on long-term performance assessments for enterprise (occupational) annuity funds over three years. Gradually expand the coverage of enterprise annuities. Support qualified employers to explore opening up personal investment choices for enterprise annuities. Encourage enterprise annuity fund managers to conduct differentiated investments.

Fourth, increase the scale and proportion of equity funds. Strengthen classified regulatory evaluation constraints, optimize the product registration mechanism, and guide public fund managers to steadily increase the scale and proportion of equity funds. Firmly establish a development concept centered on investors, create a mechanism to bind the interests of fund managers, fund managers, and investors, and enhance investors' sense of gain. Promote the implementation of operational rules for private securities investment funds, and legally expand the types of products and investment strategies for private securities investment funds.

Fifth, optimize the investment ecosystem of the capital market. Guide listed companies to increase share repurchase efforts and implement a policy of multiple dividends within a year. Promote listed companies to increase the use of share repurchase and increase re-loan tools. Allow public funds, commercial insurance funds, basic pension insurance funds, enterprise (occupational) annuity funds, and bank wealth management to participate as strategic investors in listed companies' private placements. Provide equal policy treatment for bank wealth management, insurance asset management, and public funds in participating in new stock subscriptions, listed companies' private placements, and shareholding identification standards. Further expand the scale of convenient operations for securities, funds, and insurance companies to swap