The Central Bank of the Republic of China, together with the Office of the Central Financial Commission, the China Securities Regulatory Commission, the Ministry of Finance, the Ministry of Human Resources and Social Security and the National Financial Regulatory Administration, jointly issued an implementation plan to increase medium- and long-term institutional participation in the equity market and raise the equity allocation of professional investors, following review and approval by the Central Financial Commission. The plan targets commercial insurance funds, the National Social Security Fund, the basic pension insurance fund, enterprise and occupational annuities, and public and private fund products. Measures include guiding large state-owned insurers to increase A-share and equity-fund holdings and shifting their performance assessment to a long-cycle framework of at least three years, with the annual return-on-equity weighting capped at 30% and the weight of three-to-five-year indicators set at no less than 60%, alongside accelerating the second batch of the long-term equity investment pilot for insurance funds and expanding participating institutions and funding over time. For pensions, it envisages a gradual increase in the National Social Security Fund’s equity allocation, a larger entrusted investment programme for eligible regions’ basic pension funds, and clarified long-cycle performance assessment mechanisms of at least five years for the National Social Security Fund and at least three years for the basic pension fund. Other steps include forthcoming guidance on three-plus-year performance assessment for enterprise and occupational annuities, regulatory and product-registration changes intended to lift the scale and share of equity-oriented public funds, implementation of operating rules for private securities investment funds and expansion of their permissible product types and strategies, and capital market measures such as encouraging more share buybacks and more frequent dividends, promoting use of a relending tool for buybacks and increased holdings, widening strategic participation in listed-company private placements, equal policy treatment for bank wealth management, insurance asset management and public funds in IPO subscriptions and related standards, and expanding the scale of securities-fund-insurance swap facility operations. Next steps include rapid rollout of the second insurance-fund long-term equity investment pilot, subsequent expansion of participants and funding, and accelerated issuance of the annuity long-cycle performance assessment guidance.

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