China encourages medium, long-term capital to enter market with new guideline

Xinhua | September 27, 2024

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China will take a raft of measures to promote the market entry of medium and long-term capital, in a move to invigorate its capital markets, according to a new guideline made public Thursday.

The guideline, issued by the office of the Central Financial Work Commission and the China Securities Regulatory Commission, is designed to streamline the entry of capital from social security funds, insurance and wealth management into the market.

Key measures outlined include the development of a market environment that encourages long-term investments and the improvement of the quality of publicly listed companies.

The guideline advocates the expansion of public equity funds and supports the stable development of private equity investment funds.

Additionally, the guideline seeks to refine policies and institutions that facilitate the entry of diverse medium and long-term capital.

It aims, among other things, to significantly increase the scale and proportion of medium and long-term capital investments, create a more balanced structure of capital market investors, strengthen the long-term nature of investment behaviors, and enhance the inherent stability of the market, while steadily improving investor returns.

The Political Bureau of the Communist Party of China Central Committee held a meeting on Thursday to analyze and study the current economic situation and make further arrangements for economic work.

The meeting called for efforts to boost the capital market, vigorously guide medium and long-term funds to enter the capital market, clear the obstacles for social security, insurance, and wealth management funds to invest in the capital market.