Chinese authorities unveil significant market reforms
On Thursday, China's State Council Information Office (SCIO) conducted a press conference focused on promoting the influx of medium- and long-term funds into the capital market to enhance its high-quality development.
TroibNews 
On Thursday, China's State Council Information Office conducted a press conference focused on actively promoting the flow of medium- and long-term funds into the capital market to encourage its high-quality development.
During the event, China Securities Regulatory Commission Chairman Wu Qing presented initiatives aimed at gradually broadening corporate pension coverage. Employers that meet designated criteria will be encouraged to allow individuals to make personal investment choices within corporate pension plans. To promote a variety of investment strategies, the CSRC is backing corporate pension fund managers in implementing differentiated approaches.
Wu highlighted the significance of improving public fund management, setting a goal for public funds to achieve a minimum annual market value increase of 10 percent for A-shares over the next three years.
Additionally, the CSRC disclosed plans to expedite the implementation of a second round of long-term stock investment pilots for insurance funds, with a target scale of at least 100 billion yuan. Building on ongoing projects, the CSRC plans to guide large state-owned insurance companies to notably boost both the scale and actual share of their A-share investments. Starting in 2025, 30 percent of newly collected insurance premiums will be earmarked for A-share investments.
Xiao Yuanqi, deputy director of the National Financial Regulatory Administration, elaborated on strategies to optimize insurance fund investment policies. The objective is to encourage insurance funds to gradually increase their stock market investments. Particularly, large state-owned insurance firms are anticipated to allocate 30 percent of their newly acquired premiums to stock market investments each year.
The overall goal is to steadily enhance the involvement of insurance funds in the stock market, leveraging a robust foundation to ensure they play a crucial role in stabilizing and advancing the capital market.
In a concurrent effort to support the real estate sector, Xiao announced that loan commitments for "white list" real estate projects had reached 5.6 trillion yuan as of January 22, highlighting the government's commitment to stabilizing a key sector of China's economy.
The measures introduced by the SCIO signify a strategic effort to strengthen China's capital market by increasing the influx of medium- and long-term funds. By expanding corporate pensions and directing a substantial share of new insurance premiums towards A-shares, the government aims to bolster market stability and stimulate economic growth. These reforms demonstrate a proactive strategy to encourage sustainable development in both the financial and real estate sectors, ensuring long-term advantages for China's economy.
James del Carmen contributed to this report for TROIB News
During the event, China Securities Regulatory Commission Chairman Wu Qing presented initiatives aimed at gradually broadening corporate pension coverage. Employers that meet designated criteria will be encouraged to allow individuals to make personal investment choices within corporate pension plans. To promote a variety of investment strategies, the CSRC is backing corporate pension fund managers in implementing differentiated approaches.
Wu highlighted the significance of improving public fund management, setting a goal for public funds to achieve a minimum annual market value increase of 10 percent for A-shares over the next three years.
Additionally, the CSRC disclosed plans to expedite the implementation of a second round of long-term stock investment pilots for insurance funds, with a target scale of at least 100 billion yuan. Building on ongoing projects, the CSRC plans to guide large state-owned insurance companies to notably boost both the scale and actual share of their A-share investments. Starting in 2025, 30 percent of newly collected insurance premiums will be earmarked for A-share investments.
Xiao Yuanqi, deputy director of the National Financial Regulatory Administration, elaborated on strategies to optimize insurance fund investment policies. The objective is to encourage insurance funds to gradually increase their stock market investments. Particularly, large state-owned insurance firms are anticipated to allocate 30 percent of their newly acquired premiums to stock market investments each year.
The overall goal is to steadily enhance the involvement of insurance funds in the stock market, leveraging a robust foundation to ensure they play a crucial role in stabilizing and advancing the capital market.
In a concurrent effort to support the real estate sector, Xiao announced that loan commitments for "white list" real estate projects had reached 5.6 trillion yuan as of January 22, highlighting the government's commitment to stabilizing a key sector of China's economy.
The measures introduced by the SCIO signify a strategic effort to strengthen China's capital market by increasing the influx of medium- and long-term funds. By expanding corporate pensions and directing a substantial share of new insurance premiums towards A-shares, the government aims to bolster market stability and stimulate economic growth. These reforms demonstrate a proactive strategy to encourage sustainable development in both the financial and real estate sectors, ensuring long-term advantages for China's economy.
James del Carmen contributed to this report for TROIB News
