MNI BRIEF: China To Attract Long-term Funds For Stock Market
MNI (BEIJING) - China will steadily increase the proportion of A-share investment by medium-and long-term funds by setting an investment ratio and extending the assessment period, Wu Qing, chairman of the China Securities Regulatory Commission told reporters on Thursday.
Mutual funds are required to raise A-share investment by at least 10% each year over the next three years, said Wu. Large state-owned insurance companies should strive to invest 30% of their annual new premiums in A-shares starting from 2025, Wu added.
Meanwhile, state-owned insurance firm, pension and annuity funds must establish a long-term evaluation mechanism of more than three years which can smooth out the impact of short-term market fluctuations on their performance, according to Wu. For national social security funds, the assessment period should be over five years, he added. (See MNI: Reforms Needed To Consolidate China’s Stock Rally)