In order to implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and the Central Financial Work Conference, implement the arrangements of the September 26 Political Bureau meeting, vigorously guide medium- and long-term capital entry into the market, break through blockages in social security, insurance, financial management and other funds, and strive to boost the capital market, recently, with the approval of the Central Financial Commission, the Central Finance Office and the China Securities Regulatory Commission jointly issued the “Guiding Opinions on Promoting the Entry of Medium- and Long-Term Capital into the Market”.

Key measures include: First, building a capital market ecosystem that fosters long-term investment. Take more measures to improve the quality of listed companies, encourage eligible listed companies to buy back and increase their holdings, and effectively enhance the investment value of listed companies. Strictly crack down on all kinds of illegal acts in the capital market and continue to shape a healthy market ecology. Improve the basic capital market system adapted to long-term investment, improve the supervision of medium- and long-term capital transactions, improve supporting mechanisms for institutional investors to participate in the governance of listed companies, and promote the establishment of long-term healthy interaction with listed companies.

The second is to vigorously develop equity public funds to support the steady development of private equity investment funds. Strengthen the core investment and research capacity building of fund companies, formulate a scientific, reasonable, fair and effective investment and research capability evaluation index system, guide fund companies to shift from scale to investor return orientation, and strive to create long-term stable returns for investors. Enrich the types of assets that public funds can invest in and establish ETFsIndex fundsFast approval channels to continuously increase the size and proportion of equity funds. Steadily reduce comprehensive rates in the public fund industry and promote the transformation of public fund investment pilots into routine. Encourage private equity investment funds to diversify product types and investment strategies, promote securities fund futures management institutions to increase the share of equity private equity asset management services, and meet the differentiated wealth management needs of residents.

The third is to focus on improving policies and systems supporting the entry of various medium- and long-term capital into the market. Establish and improve a long-term assessment mechanism for medium- to long-term funds such as commercial insurance funds and various types of pensions for at least three years to promote the establishment of a long-term performance orientation. Cultivate and expand patient capital such as insurance funds, break through institutional barriers affecting long-term investment of insurance funds, improve the assessment and evaluation mechanism, enrich the long-term investment model of commercial insurance funds, improve the equity investment supervision system, supervise and guide state-owned insurance companies to optimize the long-term assessment mechanism, promote insurance institutions to become firm value investors, and provide stable long-term investment for the capital market. Improve the national social security fund and basic pension insurance fund investment policy system, support eligible employers to liberalize individual enterprise annuity investment options, and encourage enterprise annuity fund managers to explore and develop differentiated investments. Encourage bank financial management and trust funds to actively participate in the capital market, optimize incentive assessment mechanisms, clear market entry channels, and increase the scale of equity investment.