According to the Chinese Government website, the State Council of China recently issued "Several Opinions on Strengthening Supervision and Preventing Risks to Promote High-Quality Development of the Capital Market." It is proposed to vigorously promote the entry of medium and long-term funds into the market and continue to strengthen long-term investment capabilities.

The "Opinions" require that a market ecosystem be established to cultivate long-term investment, the basic system adapted to long-term investment be improved, and a policy system that supports "long-term money and long-term investment" be established. Vigorously develop equity public funds and significantly increase the proportion of equity funds. Establish a fast approval channel for exchange-traded open-end index funds (ETFs) to promote the development of indexed investment. Comprehensively strengthen the investment research capabilities of fund companies, enrich the investable asset categories and investment portfolios of public funds, and transform from scale-oriented to investor return-oriented. Steadily reduce the comprehensive fee rate of the public fund industry, and study and standardize the fund manager remuneration system. Revise the classification evaluation system for fund managers and urge them to firmly establish the concepts of rational investment, value investment and long-term investment. Support the steady development of private securities investment funds and private asset management businesses and improve the stability of investment behavior.

The "Opinions" propose to optimize the policy environment for equity investment in insurance funds, implement and improve the performance evaluation methods of state-owned insurance companies, and better encourage long-term equity investment. Improve the insurance fund equity investment supervision system and optimize the information disclosure requirements of listed insurance companies. Improve investment policies for national social security funds and basic pension insurance funds. Improve the investment flexibility of enterprise annuities and personal pensions. Encourage bank financial management and trust funds to actively participate in the capital market and increase the scale of equity investment.

Reprinted (China News Service, April 12)