BEIJING, Jan. 24 (Xinhua) -- China proposed in a recent capital market-boosting plan a basket of detailed measures to remove obstacles for mid- and long-term funds to enter the A-share market, reported Xinhua Finance on Thursday.
The report cited Wu Qing, head of the Chinese securities regulator as saying, stressing three aspects of what the implementation plan focuses on in fostering investment in A-shares by mid- and long-term funds.
Generally speaking, the plan arranges lifting of the proportions and sizes of mid- and long-term fund sources' investment in A-share market at a steady pace, implements longer appraisal cycles for such fund holders, and forms integrated boosters to flesh out previous incremental policies.
For instance, publicly-offered funds will be encouraged to grow their market capitalization of negotiable A-shares in the following three years by at least 10 percent annually.
For commercial insurers, the Chinese securities regulator will strive to promote large state-owned insurers to pump from this year 30 percent of their annual newly-added premium incomes into A-share investment.
Moreover, the second batch of long-term stock investment pilot programs for insurance capital is reported to debut in the first half of 2025 and the targeted overall size is initially set at no less than 100 billion yuan.
All of these measures of the plan are expected to further shore up the equity allocation capabilities of mid- and long-term funds, steadily enlarge their investment, improve the funds supply and structure of capital market, and facilitate such fund sources to increase long-term investment returns, said the report quoting Wu.
Mid- and long-term fund sources under the plan refer mainly to commercial insurers, national social security fund, basic pension funds, annuity funds, and publicly-offered funds.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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