China calls for help for A shares! Plans to inject billions of people's coin each year, but the market is still worried about Trump's tariff threat

To support the Chinese stock market, the Chinese government announced today the implementation plan for promoting the entry of medium and long-term funds into the market. The plan sets indicators for the scale of public sale funds and large state-owned insurance companies investing in the A-share market. Wu Qing, Chairman of the China Securities Regulatory Commission, pointed out that this move can bring in long-term funds of billions of RMB coins to the A-share market every year, and extending the assessment period can enhance the stability of medium and long-term investment behavior. (Background: China's bond yield hits a new low! Bloomberg warns: may trigger deflation spiral following Japan) (Background: Can Chinese people buy Hong Kong BTC ETF? Central Bank: Will expand investment in legitimate financial products in the Mainland and Hong Kong and Macao) The China Securities Regulatory Commission announced on its official website on the 22nd the implementation plan for promoting the entry of medium and long-term funds into the market. Wu Qing, Chairman of the China Securities Regulatory Commission, pointed out that the plan can bring in long-term funds of billions of RMB coins to the A-share market every year, and extending the assessment period can enhance the stability of medium and long-term investment behavior. China promotes new policies for the entry of medium and long-term funds into the market. The implementation plan was jointly issued by the Central Financial Office of China, the China Securities Regulatory Commission, the Ministry of Finance, the Ministry of Human Resources and Social Security, the People's Bank of China, and the China Banking and Insurance Regulatory Commission. It focuses on guiding commercial insurance funds, national social security funds, basic pension insurance funds, corporate (occupational) pension funds, public sale funds, and other medium and long-term funds to further increase their entry into the market. Wu Qing stated that in terms of increasing the actual investment ratio, the plan clearly states that the public sale funds holding A-share market cap should rise by at least 10% annually over the next three years; for commercial insurance funds, efforts should be made for large state-owned insurance companies to invest 30% of the newly added premiums in A-shares starting from 2025, which means billions of RMB coins of long-term funds will be added to the A-share market every year. The second batch of long-term stock investment trials by insurance funds will be implemented in the first half of 2025, with a scale of no less than 100 billion RMB coins, and will be gradually expanded thereafter. Xiao Yuanqi, Deputy Director of the China Banking and Insurance Regulatory Commission, stated that there is still great potential for insurance companies to invest in stocks, especially large state-owned insurance companies should play a leading role and strive to invest 30% of the new premiums in the stock market every year. The proportion of insurance funds invested in the stock market will continue to steadily increase on the existing basis, fully exerting the positive role of insurance funds as institutional investors in long-term investment and value investment. The plan will extend the assessment period for the entry of medium and long-term funds into the market. Wu Qing pointed out that the plan clearly proposes that mutual funds, state-owned commercial insurance companies, basic pension insurance funds, and pension funds should all establish and implement assessments for more than three years. It significantly reduces the weight of the annual operating indicators assessment for state-owned insurance companies and specifies the five-year assessment for the national social security fund. Implementing long-term assessments can effectively mitigate the impact of short-term market fluctuations on performance and enhance the stability of medium and long-term investment behavior. Is it good news for the Chinese stock market? In response to the above news, the Chinese stock market had mixed reactions. The Shanghai Composite Index rose 1.86% at one point and closed up 0.51%, the Shenzhen Component Index rose 1.82% at one point and closed down 0.49%, and the CSI 300 Index rose 1.8% at one point and closed up 0.18%. Bloomberg reported that the Chinese government's move is helpful in improving the negative sentiment that Chinese investors have suffered due to US President Trump's tariff threats earlier this week. Tai Hui, Chief Market Strategist for Asia Pacific at J.P. Morgan Asset Management, said that this is like building firewood for a bonfire, and the company is preparing for a more constructive environment, but it needs a spark. Many international investors are concerned that further deterioration of US-China relations may affect investment. Gary Tan, Portfolio Manager at Allspring Global Investments, said that this is gradually becoming positive for the A-share market, but it is not a game-changing factor. The company has been increasing its investment in China based on stocks with reasonable valuations rather than looking for catalysts, because China needs time to solve fundamental problems in its economy. Related reports: Chinese hackers infiltrate the US Treasury! Treasury Secretary Yellen's computer hacked, Musk mocks: She clicked on a BTC phishing email. Move the Three Gorges Dam into space? China plans to build a solar power space station, will humanity embrace energy freedom? Chinese actor Wang Xing goes to Thailand to 'turn into a piglet and sell to Myanmar', is there a cryptocurrency transaction record?