China's securities regulator seeks to guide more long-term capital into stock market
Published: Aug 25, 2023 02:47 AM Updated: Aug 25, 2023 02:47 AM
China Securities Regulatory Commission in Beijing Photo:VCG

China Securities Regulatory Commission in Beijing Photo:VCG

The China Securities Regulatory Commission (CSRC), the top regulator, on Thursday held a meeting with major institutional investors to discuss issues such as guiding more medium and long-term capital into the stock market, in a bid to boost the capital market.

The meeting, attended by heads of the national security fund and some large banking and insurance institutions, is significant as the CSRC has been moving swiftly to vitalize the Chinese stock market, part of China's broad efforts to stabilize economic development amid challenges.

The meeting emphasized the importance of various long-term capital sources, including pension funds, insurance funds, and banks' wealth management, for the sound development of the capital market.

"In general, the participation of medium and long-term capital in the capital market has consistently expanded in breadth and depth, which has yielded favorable medium and long-term returns, gradually strengthening positive interaction with the capital market. This injects fresh impetus into the high-quality development of the capital market," the meeting concluded, according to the statement.

The meeting called on medium and long-term capital to focus on increasing the scale and proportion of equity investment. Representatives of the institutions vowed to better play the role of medium and long-term funds as a market stabilizer and economic development booster, correctly view short-term market fluctuations, and grasp the general trend of long-term improvement.

They further committed to increasing the allocation of equity assets and leading long-term investment, value investment, and steady investment through practical actions, according to the CSRC statement.

The CSRC said that it will strengthen policy coordination with relevant departments to jointly provide robust support for medium and long-term funds such as pensions, insurance funds, and bank wealth management funds to participate in the capital market.

This marks the latest step by the CSRC to vitalize the capital market. On May 18, it announced a range of policies aimed at boosting the Chinese stock market, including cutting transaction fees, vigorously developing equity funds and mulling to open a "green channel" for tech firms that aim for breakthroughs in core technologies.

Global Times