The Central Financial Office and the China Securities Regulatory Commission jointly issued the "Guiding Opinions on Promoting the Entry of Medium and Long-term Funds into the Market". The main goal of the guidance is to significantly increase the scale and proportion of medium and long-term fund investments after a period of effort, make the capital market investor structure more rational, comprehensively strengthen the long-term nature of investment behavior and the inherent stability of the market, and steadily increase investor returns.

The opinions point out the need to improve various supporting policies and systems for the entry of medium and long-term funds into the market. Establish a sound three-year and above long-term performance evaluation mechanism for commercial insurance funds, various retirement funds, etc., promote the establishment of long-term performance orientation. Cultivate and expand patient capital such as insurance funds, remove institutional barriers affecting the long-term investment of insurance funds, improve evaluation mechanisms, enrich long-term investment models of commercial insurance funds, improve equity investment supervision systems, urge and guide state-owned insurance companies to optimize long-term performance evaluation mechanisms, promote insurance institutions to become resolute value investors, and provide stable long-term investment for the capital markets.

At the same time, it is necessary to improve the investment policy systems of the national social security fund and the basic retirement insurance fund, support qualified employers to open up individual investment choices for corporate pensions, encourage corporate pension fund managers to explore differentiated investments, and encourage banks' wealth management and trust funds to actively participate in the capital markets, optimize incentive and evaluation mechanisms, open market access channels, and increase the scale of equity investments.

The opinions emphasize the vigorous development of equity public funds and support the steady development of private equity securities investment funds. Strengthen the core research and development capabilities of fund companies, guide fund companies to shift from scale orientation to investor return orientation, and create long-term stable returns for investors. Enrich the categories of publicly offered fund investments, establish a fast approval channel for ETF index funds, continuously increase the scale and proportion of equity funds, encourage private equity securities investment funds to enrich product types and investment strategies, promote securities fund futures operations institutions to increase the proportion of equity private equity asset management business, to meet the differentiated wealth management needs of residents.

The opinions also suggest building and promoting the capital market ecosystem that encourages long-term investments. Employ multiple measures to improve the quality of listed companies, encourage eligible listed companies to repurchase and increase shareholdings, effectively enhance the investment value of listed companies. Crack down severely on various illegal activities in the capital market, continuously shape a healthy market ecosystem. In the next step, under the coordinated leadership of the Central Financial Office, the CSRC will work with relevant ministries to strengthen policy coordination and information sharing, enhance collaborative efforts, and ensure the implementation of various measures outlined in the guidance.