At a State Council Information Office press conference, the China Securities Regulatory Commission (CSRC) outlined a six-agency Implementation Plan aimed at bringing more medium- and long-term money into China’s capital markets, with quantified expectations for public funds and insurance capital and a shift toward longer performance assessment cycles. The plan calls for public mutual funds’ holdings of A-share free-float market value to grow by at least 10% per year over the next three years. For insurance funds, large state-owned insurers are encouraged from 2025 to invest 30% of annual new premiums in A-shares, and a second batch of long-term equity investment pilots is to be implemented in the first half of 2025 with a size of no less than CNY 100 billion; the National Financial Regulatory Administration indicated an initial CNY 50 billion tranche would be approved before the Spring Festival. The long-cycle assessment framework is to extend to three years or more for public funds, state-owned commercial insurers, basic pension funds and annuity funds, with a five-year or longer arrangement for the National Social Security Fund; the Ministry of Finance signalled revisions to state-owned insurers’ performance evaluation, including lifting the weight of the three-year return on equity metric to at least 60%. In parallel, the CSRC described a public fund reform package covering governance, investor-aligned incentives and tighter controls on short-term trading practices, alongside further reductions in fund sales fees from 2025 that it estimated would save investors around CNY 45 billion annually, and measures to promote index investing including a five-working-day registration timeline for stock exchange-traded funds. The CSRC said it is continuing to consult industry participants and investors on the public fund reform plan ahead of implementation, while other follow-through actions highlighted included scaling the insurance long-term equity investment pilots and completing procedural steps to publish revised domestic investment management rules for the National Social Security Fund.
China Securities Regulatory Commission 2025-01-23
China Securities Regulatory Commission sets targets to expand long-term capital in A-shares including 10% annual mutual fund growth and 30% new-premium allocation by state-owned insurers
The China Securities Regulatory Commission (CSRC) announced a six-agency Implementation Plan to boost medium- and long-term investments in China's capital markets. It targets a 10% annual growth in public mutual funds' A-share holdings and encourages large state-owned insurers to invest 30% of new premiums in A-shares from 2025. The plan includes extending performance assessment cycles, revising state-owned insurers' evaluations, and implementing a public fund reform package to enhance governance and reduce fund sales fees. The CSRC is consulting on the reform plan and preparing to publish revised investment management rules for the National Social Security Fund.